OVERVIEW OF THE
PAN EUROPEAN OIL PIPELINE (PEOP)
PROJECT
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 Pančevo
- 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 Pančevo
CURRENT AND FUTURE OIL SUPPLY DIRECTIONS
FROM CASPIAN REGION
OPERATING OIL PIPELINES
CASPIAN - BLACK SEA REGION
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
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 tons – alternative needed
- ship collisions, sea accidents, … resulting in severe pollution of the sea
PEOP - PAN EUROPEAN OIL PIPELINE
FUTURE OIL SUPPLY DIRECTION
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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
PEOP - PAN EUROPEAN CRUDE OIL PIPELINE
Past Activities
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2007 - Ministerial Declaration signed by European Energy Commissioner on
behalf of European Commission & by all 5 Countries (Italy, Slovenia, Croatia,
Serbia and Romania);
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2008 - Founding of the PEOP Project Development Company registered in
London, United Kingdom;
Future Activities
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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:
-No Oil Pollution (tanker oily ballast water)
-Risk reduction of accidental discharges
-Preservation of sea bio diversity
- Sea water quality improvement
- Air and shore pollution decrease
- Less invasion of non-native species
Bosporus problems:
-Heavy & dangerous traffic
with no possibility of volume increase
-Constant pollution of air, water and soil
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
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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
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To frozen the project of PanEuropean 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