CRUDE LINE PROPOSED IN CZECHOSLOVAKIA

Kuwaiti interests are backing proposals for a pipeline to link Czechoslovakia into western Europe's crude oil supply network via the North Sea or Baltic Sea. The project competes with a proposed pipeline to tie Czechoslovakia into the southern European crude supply system through the oil terminal at Trieste, Italy, on the Adriatic Sea. Czechoslovakia previously imported all its crude through the Druzba (Friendship) lines from the Soviet Union. But in the future much of the country's

Nov. 4, 1991

3 min read

Kuwaiti interests are backing proposals for a pipeline to link Czechoslovakia into western Europe's crude oil supply network via the North Sea or Baltic Sea.

The project competes with a proposed pipeline to tie Czechoslovakia into the southern European crude supply system through the oil terminal at Trieste, Italy, on the Adriatic Sea.

Czechoslovakia previously imported all its crude through the Druzba (Friendship) lines from the Soviet Union. But in the future much of the country's crude requirements will come from non-Soviet sources.

WHAT'S POSSIBLE

Proposals put forward by the Kuwaitis in the form of former Oil Minister Ali Khalifa al-Sabah, Sanbar Development Corp., and London consultant Penspen involve a 60 mile, 20 in. pipeline from the Litvinov refinery in northern Czechoslovakia to Zeitz in eastern Germany.

Here the new line would join an existing pipeline that links the large Leuna petrochemical complex to the PCK Schwedt refinery, which has been sold to a group of international companies. This pipeline has a capacity of 340,000 b/d, but throughput is only about 140,000 b/d. That leaves substantial capacity to serve any extension into Czechoslovakia.

At Schwedt the line links into the northern leg of the Druzba line through Poland. This system has a spur from Plock into the Baltic port of Gdansk, where Sanbar has extensive development plans.

The Baltic is not the only potential import point for crude destined for Czechoslovakia. Under consideration are plans for new pipelines from Schwedt to either Rostock on the Baltic, a new terminal also on the Baltic, or a longer line to Germany's main oil import port at Wilhelmshaven on the North Sea.

Kuwait also has an interest in the Czechoslovakian market. Kuwait Petroleum International is building service stations and has taken over some existing outlets in the country. The company is thought to be interested in expanding its operations.

Czechoslovakian federal authorities are assessing studies of the Litvinov-Zeitz link that could provide cheaper access to non-Soviet oil supplies than the proposed 210 mile, 28 in. line from Kralupy to Ingolstad, the southern German terminal of the Trans-Alpine Pipeline (TAL) from Trieste.

Proposals for the TAL connection were first on the scene. A Czechoslovakian company has been formed in Germany to finance and lay the 200,000 b/d line. Work could start next spring if all government approvals are forthcoming and financing can be arranged with the European Bank for Reconstruction, the European Community, or other international sources.

Another import alternative that has been explored is a 37 mile pipeline from the Bratislava, Czechoslovakia, refinery near the border with Austria to the Adria-Wein pipeline, a spur of the TAL system running through Austria. There could be capacity problems with this route.

The requirement for alternative crude oil import systems takes place against Czechoslovakia's plan to privatize its refining and transportation sectors and continuing efforts of Germany to privatize the Leuna petrochemical operations and the pipeline link to Schwedt.