Transneft and KazTransOil to draft feasibility study for oil pipeline to Iran

Aug 30, 2001 02:00 AM

Transneft has teamed up with KazTransOil to draft a feasibility study for an oil export pipeline from Siberia to northern Iran to be built on the basis of the Tyumen-Pavlodar-Turkmenabad pipeline with a capacity of up to 20 mm tpy. The export pipeline will enable Russia to diversify its oil exports, which are mainly linked with Europe.

At the first stage, the throughput capacity of the oil pipeline will equal 5 mm tons and further will be determined by Iran's requirements. The downside of the project is the high cost (more than $ 1 bn) and the length of the pipelines (more than 4,000 km), which raises transportation costs to at least $ 25 per ton. At the first stage, oil would be brought to Iran by sea or by rail. The second stage provides for building a 1,000 km gas pipeline via Turkmenistan.

Source: Kommersant via NewsBase
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