EU study of Caspian

Jan. 7, 2002
First and foremost we would like to commend Orhan Degermenci (OGJ, Nov. 5, 2001, p. 68) for the high-quality presentation of the findings contained in the above-mentioned study. The judicious selection of the comparison criteria, the analytical skills used, and the careful data sorting allow the reader to draw qualified conclusions.

First and foremost we would like to commend Orhan Degermenci (OGJ, Nov. 5, 2001, p. 68) for the high-quality presentation of the findings contained in the above-mentioned study. The judicious selection of the comparison criteria, the analytical skills used, and the careful data sorting allow the reader to draw qualified conclusions.

While the EU study took about 18 months to complete, it is assumed that additions and refinements to existing studies listed in Table 1 of the EU study are still taking place. Examples we are aware of are the routes DO and EO.

Referring to these routes, HLP/Parsons is the author of the Constantza-Trieste Pipeline (CTPL) feasibility study which has examined DO and EO routes. This study was completed in 1999. Since then, new circumstances have allowed us to modify DO and EO by rerouting the oil pipeline through Yugoslavia. This new pipeline, named CTPL2, runs from Constantza, Romania, to Pancevo, Novi Sad, in Yugoslavia, then to Sisak, Omisalj, in Croatia and finally to Trieste, Italy. This new route provides a vital infrastructure link along the East-West corridor currently being promoted by the EU INOGATE initiative.

The CTPL2 pipeline represents, in our opinion, an optimal European East-West route. Compared with its predecessors, DO and EO, the route is shorter and allows extensive use of pipeline segments, existing rights-of-way, pump stations, electric power connections, and other existing facilities. Therefore, the capital cost is significantly reduced. The calculated tariffs which include a reasonable rate of return are quite competitive.

CTPL2 is conceived as a direct market-oriented pipeline which will serve refineries in Central and Western Europe and also the global market through the Adriatic deep sea port in Omisalj, Croatia. This pipeline provides an alternative supply to many European refineries which until now have depended upon a single source of crude oil. This would open a competitive market for crude oil in this part of the world.

A CTPL2 revised feasibility study will be issued in the 2nd quarter of 2002.

H. Hertanu
J.T. Powers
HLP/Parsons
New York/Houston