Pipeline Moves Further West

On January 14, the Ukrainian government approved an agreement with Poland signed in November 2003 on use of the Odessa-Brody oil pipeline and its integration into the Polish oil transportation system, reported Deputy Prime Minister Andrei Kluev. The pipeline will be used for delivery of Caspian and Azerbaijani oil to Europe bypassing Russia.

On January 16, Ukrtransneft is going to sign the agreement on establishment of a joint venture for construction of the Brody-Plotsk pipeline extension. According to Kluev, the project requires about $600 million. Construction of the 556-kilometer Brody-Plotsk pipeline with capacity of 25 million tons will take three years. During this period Ukraine may use the Odessa-Brody in a reverse mode for transportation of Russian oil from Brody to the Southern terminal in the Black Sea.

On January 15, Ukrainian Fuel and Energy Minister Sergei Yermilov said that Ukrainian government would make the relevant decision on February 1. Feasibility of the pipeline operation in the reverse mode was studied by American company Energy Solution, which already presented its conclusions to the Ukrainian government.