OVERVIEWOVERVIEW OFOF THETHE PANPAN EUROPEANEUROPEAN OILOIL PIPELINEPIPELINE (PEOP)(PEOP) PROJECTPROJECT
2nd Oil Forum of the Energy Community
8th – 9th November 2010 Belgrade, Serbia PUBLIC ENTERPRISE TRANSNAFTA – FACT SHEET
- Public Enterprise founded by the Government of Serbia in 2005
- Registered for pipeline transport of crude oil and petroleum products and for oil and petroleum products storage
- Supplying 2 refineries with crude oil – Novi Sad and Pan čevo
- Total average transport volume – app. 3 mil.t/anum (domestic production and imported crude oil)
- Currently operating on a section of Adria oil pipeline (ex-Yugoslav) in length of 155km from Croatian border to refinery in Pan čevo CURRENT AND FUTURE OIL SUPPLY DIRECTIONS FROM CASPIAN REGION OPERATING OIL PIPELINES CASPIAN - BLACK SEA REGION
Proposed Length Diameter Capacity Pipeline upgrades (km) (inch) (MTA) (MTA) CPC 1,510 40-42 35 65 Baku-Supsa 834 20 7.5 15-30 Baku-Novorossiysk 1,330 28 5 n/a
TANKER TRANSPORT FROM BLACK SEA
•Bosporus and Dardanelles limitation - transit capacity will be outstripped
•Environmental Issues CRUDE OIL AVAILABILITY IN BLACK SEA REGION
Projected demand for crude oil and transport availabilities
Projected Current Min Max
Caspian 30 105 175
Russian 30 105 115
Total 60 210 290
Efficiency, increase of volume and safe transport needed in the Black Sea!
Bosphorus - transport bottleneck optimized and with no further possibility of traffic increase;
- impossible to increase to more than 80 miliona ton s – alternative needed
- ship collisions, sea accidents, … resulting in severe pollution of the sea PEOP - PAN EUROPEAN OIL PIPELINE FUTURE OIL SUPPLY DIRECTION
PEOP: Constanta - Trieste (Romania, Serbia, Croatia, Slovenia and Italy) Pipeline length – 1,320 km Optimal capacity estimated - 60 MTA Total cost estimated - 3 billion USD Crude oil transport from Caspian and Black Sea region Supply of 6 refineries on pipeline route Possibility for pipe-into-pipe connection with TAL and oil pipeline in Italy Solution to Bosporus problems (heavy& dangerous traffic) Avoiding pollution of Black Sea, Aegean Sea, Mediterranean & Adriatic Sea BACKGROUND STUDIES
- Aug 2002, HLP-PARSONS Croatian Ministry of economy received the grant from USTDA for the feasibility study for the Constanta-Pancevo-Omisalj-Trieste CPOT pipeline
- Feb 2005, HILL INTERNATIONAL CONSORTIUM Romanian government received a grant from EU Phare Programme for the feasibility study for the Romanian segment of the pipeline and overall market economic study of the project
-March 2005, INTERNATIONAL ADVISORY BOARD (IAB) FOR PEOP PIPELINE PROJECT PEOP Pan European Oil Pipeline Project, A feasibility study prepared for IFC and for Interstate Committee of PEOP CORE MARKET FOR PEOP
Industrial heartlands of Northern Italy, Germany, Austria and Czech Republic
Existing Pipeline system fed from Trieste and Genoa is being supplied by tankers using the Adriatic and Mediterranean Seas – additional LOAD/UNLOAD!
http://www.porto.genova.it/uk/porto/terminal/p.petroli3.jpg PEOP CONSTRUCTION PLAN
% Planned for Total Country Existing (km) of the total oil building (km) (km) pipeline length
Romania 0 635 635 48.5 60 (plus additional 85 Serbia 135 195 14.9 not being considered for using) 40 Croatia 400 (from Melnice to 440 33.6 SLO border)
Slovenia 0 30 30 2.3
Italy (Trieste) 0 10 10 0.7
TOTAL 460 850 1310 100 PEOP - PAN EUROPEAN CRUDE OIL PIPELINE
Past Activities
2007 - Ministerial Declaration signed by European Energy Commissioner on behalf of European Commission & by all 5 Countries (Italy, Slovenia, Croatia, Serbia and Romania);
2008 - Founding of the PEOP Project Development Company registered in London, United Kingdom;
Future Activities
Organization of Investment Conference Harmonization of Countries Signatories Laws; Providing bases for technical documentation; Pre-feasibility Study, Feasibility Study, Environmental Study & Detail Design; PEOP – CARRYING FOR ENVIRONMENT!
Reduction of pollution of Black Sea, Aegean Sea, Mediterranean & Adriatic Sea!
PEOP environmental effects: Bosporus problems: - No Oil Pollution (tanker oily ballast water) - Heavy & dangerous traffic - Risk reduction of accidental discharges with no possibility of volume increase - Preservation of sea bio diversity - Constant pollution of air, water and soil - Sea water quality improvement - Air and shore pollution decrease - Less invasion of non-native species TANKER TRAFFIC IN THE NORTH OF THE ADRIATIC SEA
• WITH PEOP – REDUCTION of Tanker transport FOR APP. 50 MTA
G. Sekulić, JANAF, Croatia - PEOP Strategic pipeline for Europe, Energy Conference Package, Ljubljana 13.12.2006 OVERALL POSITIVE IMPACT OF PEOP
1. Preventing disruption of supply of European countries with crude oil and petroleum products at a national/regional level – Council Directive 2006/67/EC; 2. Significant contribution to environment protection (land, air, seas); 3. Appropriate use of existing facilities, stranded assets, corridors and terminals; 4. Diversification of oil transport routes and creation of Base for tangible market opening and third party access (TPA) to infrastructure in order to facilitate regional trade and security between Black Sea, Mediterranean and Danube (Central Europe) markets and elevate monopolistic threats; 5. Enhanced regional cooperation and direct connection to international crude oil pipeline systems; 6. Pipe -into -pipe connection with TAL and NIL pipelines in Italy and DRUZHBA – ADRIA pipeline in Croatia PEOP - PAN EUROPEAN CRUDE OIL PIPELINE
PERSPECTIVE 1
- To continue with the project of Pan-European interest; - To involve of all Host Countries into the project cycle process; - To strength the role of the Interstate Committee;
PERSPECTIVE 2
- To frozen the project of Pan- European interest; - To apply the interregional approach for the time being – connecting Serbian and Romanian crude oil pipelines; Public Enterprise TRANSNAFTA
Contact details:
Mr. Srdjan Mihajlovic General Manager E-mail address: [email protected] www.transnafta.rs
Postal Address: 1, st. Zmaj Jovina, 26000 Pancevo, Serbia