Ukraine and Croatia discuss Druzhba-Adria integration

Nov 04, 2003 01:00 AM

Ukrainian Energy Minister Serhiy Yermilov and Vesna Trnokop-Tanta, president of the Croatian company JANAF, met in Kyiv to discuss the integration of the Druzhba and Adria pipelines, the Ukrainian Fuel and Energy Ministry said. The ministry said that during the meeting the JANAF president announced that Croatia has already invested funds in the project, but a decision on further financing is being delayed by the fact that participants have not ratified the project, including Ukraine (Ukraine, Russia and Belarus have signed a cooperation agreement for the Druzhba-Adria project).
Yermilov said that the Ukrainian government has approved a draft law on the ratification of the agreement and has sent it to parliament. "We consider the project to integrate these pipelines to be a priority and expect that parliament will reach the necessary decision in the near future," he said.

The parliamentary committee for the fuel and energy complex and nuclear policy and safety recommended to parliament to ratify the cooperation agreement for the integration of the Druzhba and Adria pipelines.
The Druzhba-Adria project involves the creation of an export route for oil from Russia, and possibly from the CIS to the world market, including the North American market, via the deep-water port of Omisalj, bypassing the Bosporus and the Dardanelles. It is planned to gradually load and increase the existing pipeline capacities (by 5, 10 and 15 mm tpy).

The total length of the route exceeds 3,000 km. Russia, Croatia, Ukraine, Belarus, Slovakia and Hungary signed an agreement on the unification of the Druzhba and Adria pipeline systems in December 2002 for 10 years, with the possibility of being extended.
The authorized organization from Russia for the project is Transneft, Belarus -- Gomeltransneft-Druzhba, Hungary -- MOL, Slovakia -- Transpetrol, Ukraine -- Ukrtransnafta, and Croatia -- JANAF. Transneft is the single operator for the project.

Source: Interfax