GAIL to build pipeline for Black Sea crude

Apr 22, 2005 02:00 AM

As part of gearing up to strengthen India's oil security measures, the ministry of petroleum and natural gas has asked GAIL India to create an oil transportation corridor connecting Central Asia (oil resources of Caspian Sea) by building a 2,000 km plus transnational pipeline to bring crude from Russian and Caspian Sea to the Asian markets, including India and China.
To begin with, GAIL has been asked to construct the Samsun-Ceyhan pipeline across Turkey, which is an important link of this corridor. In the second stage, the pipeline will connect from Ceyhan to Egypt. Asian countries like India can access crude through tankers from Egypt or through an offshore or onshore pipeline proposed to constructed by GAIL-led consortium.

The oil reaching Samsun from Caspian Sea will then be transported through the GAIL-Turkey joint venture 525 km onland pipeline to Ceyhan across Turkey. The oil from Ceyhan can be made available in Red Sea area through a deep water or shallow water pipeline followed by an onland pipeline and a small offshore pipeline to Al Bahr Al Ahmar port (Egypt) or an onland pipeline through Syria and Jordan to Egypt. From Egypt, the oil can be transported by tankers to Asian markets including India and China.
This will help India import oil from the second largest oil producer in the world at an affordable tariff on long-term basis.

A joint working group of GAIL and BOTAS Petroleum of Turkey will be constituted for examining issues concerning pipeline option connecting Samsun Port in North Turkey to Ceyhan on the Mediterranean side of Turkey.
India wants to utilise the expertise of GAIL, which successfully laid 5,500 km of gas pipeline and 1,900 km of LPG pipeline in the country. It has diplomatic relationship with countries since it was nodal agency for sourcing crude from Oman.

Source: The Economic Times
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