Energy 5 June, 2023 7:25 am   
COMMENTS: Joanna Słowińska

Odessa-Brody-Gdańsk oil pipeline will return if there is money

Ropociag-760×506 Oil pipeline photo. Transneft

The Odessa-Brody-Gdańsk oil pipeline project could connect Poland and Ukraine enabling bi-direction transport – of Caspian oil as well as oil from Poland’s naftoport. The countries are now looking for a financing model and are in talks with possible stakeholders to revive the project. A fuel pipe is also on the table.

“At this point we want to return to this project and we are in talks. The situation in Ukraine shows that it is undoubtedly necessary to expand the infrastructure to ensure the energy security of our borders, ” said Serhiy Skrypka, president of Sarmatia, responsible for the Odessa – Brody – Gdańsk oil pipeline project, during the 2023 Nafta and Gas conference.

“The Russian invasion deprived Ukraine of oil supplies. Since the beginning of the conflict, Poland and Ukraine have talked about the conditions for the termination of supplies of Russian oil. Of course, there was the possibility of resuming supplies from the East, but such a plan was not considered at all. Ports in the Black Sea are currently blocked and there is no possibility to deliver oil,” Skrypka explained. “Of course, we cannot proceed to implementation now. We must wait until the war is over. The project will depend on the plans of Ukraine: whether it will return to fuel refining. I hope that will be the case and then it will be necessary to build the pipe,” he said.

“Since Europe introduced sanctions on oil fuels from Russia, in the zone of potential impact of the future oil pipeline and the entire Eurasian corridor, and therefore in the context of supplies from Central Asia, there are countries that previously imported 47 million tons of Russian oil. This must now be replaced by supplies from other countries. I believe that the countries of the region will be able to submit a competitive proposal, provided that the appropriate infrastructure is created,” said the president of Sarmatia.

“As for the possibility of building a fuel pipeline on this route, it will be an important element of critical infrastructure,” Serhiy Skrypka said. “Transshipment of fuel on the railway is a big problem due to the attacks. If there was a fuel pipe, this problem would disappear,” he pointed out.

“The Ukrainian market after the war will decide whether to rebuild the refinery sector or rely on fuel imports,” said Paweł Wysocki, Director of the Technical Division at PERN. “We have the best stations in Poland, because we started building them at the latest. We have the best banking system for the same reason. So it is not known whether Ukraine will return to the old oil system or make a technological leap and go further. It’s their decision. We are ready to find a solution and if it is possible to interest everyone who can benefit from this project, make money from it and make Ukraine safer, we are open – minded,” the representative from PERN promised. He recalled in this context the reverse of the Friendship Oil Pipeline on the border with Belarus in the form of a third line as an example of a successful investment in this area. The reverse was used to increase the potential of the Polish oil transmission system, and one day it can be used for deliveries to Belarus.

“Revenues and money for the maintenance of infrastructure are important. That is why we are talking with our partners about finding a solution that will allow us to possibly implement this project in an economically efficient way,” concluded Wysocki.

Wojciech Jakóbik