Constanta-Trieste line would complement Baku-Ceyhan

Dec 06, 1999 01:00 AM

by Charles Coe

The proposed Constanta-Trieste crude oil pipeline (CTPL) would complement, not compete with the Baku-Ceyhan pipeline, according to Jimmie Powers, a representative of the Parsons Energy & Chemical Group.
"One of the study's conclusions is that the CTPL should not be considered a competitor to the Baku-Ceyhan pipeline, but a complement," Powers said. "Much of the Caspian Pipeline Consortium [CPC] volumes from Novorossiysk could be handled by the CTPL, thereby reducing the traffic through the Bosphorus and providing an outlet for the Caspian area crude during the long period that it will take to bring the Baku-Ceyhan pipeline into reality. We feel that it is urgent to get the project moving so it can be ready when the Caspian producers complete their export projects," he added.
The Houston-based company and its partners completed a pre-feasibility study on the CTPL project earlier this year and presented their findings at the Caspian Energy to Europe-99 conference in Bucharest in September.
The CTPL would run across southern Romania, southern Hungary, and through central Slovenia before crossing into Italy and terminating at Trieste, where it would link up with the Trans-Alpine Pipeline (TAL). The pipeline would have a design capacity to deliver by 2012 some 942,000 barrels per day to the Adria pipeline junction in Hungary, 314,000 bpd as far as the Lendava junction in Slovenia and 288,000 bpd to Trieste. Parsons estimates the construction cost for the 1,400-km pipeline at between $ 800 million and $ 1 billion, with the pipe becoming operational by 2002.
The CTPL study group, which included HLP Associates of New York and other U.S. and Romanian firms, is now looking to finance a full feasibility study. "Our next step is to go into the detail," Powers said. "For example, to identify the permit requirements, select the exact routing, identify the potential owners, line-up the financing, get the agreements for purchase and supply in place, etc. That's what the next level of funding is intended to cover." A specific group for "mezzanine financing" had not yet been identified, Powers said, but meetings with several interested groups are taking place.
Drawing upon the pre-feasibility study's conclusions, Powers said it appeared that the project would be more competitive if the existing Adria pipeline could be used from a point in southern Hungary, through Croatia to Omisalj, before laying a new pipeline from Omasalj to Trieste. He said this proposal had been recommended to the U.S. Trade and Development Agency (TDA) for further study.

Source: NewsBase
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