Strategic Position Of Ukraine
In Relation To Euro-Asian
Pipeline Network
EU INOGATE PROGRAMME
INOGATE -
Interstate oil and gas transport to Europe
"Given the increasing density of the
maritime traffic in the waters around the EU and in the
enclosed Black Sea, it is of utmost importance to give a
higher priority to considering, where economically and technically feasible, the alternative of transporting oil by pipelines...."
Crude Oil Pipelines - INOGATE Maps
INOGATE Web Site
"INOGATE strategic routes are those
hydrocarbon transportation routes that have a greater pan-European interest. The purpose
of the INOGATE maps is to highlight the strategic priority axes and not to set out
detailed technical routing. The INOGATE Maps highlight the priority axes for natural
gas and crude oil pipelines, which involve INOGATE Participating Countries and
Russia.."
INOGATE Maps
INOGATE Map of Natural Gas Pipelines
(2003)
INOGATE Map of
Crude Oil Pipelines (2003)
FROM INOGATE MAPS 2001
Map 1: Insert from Map 2 showing Ukrainian pipeline network
(INOGATE map 2001)
Map 2: Map showing Ukraine network in relation to totality of European-Central Asian
Pipeline Network (INOGATE map 2001)
(Maps created by EU 'INOGATE' project)
Map 1
Map 2
For Full Size Version Of This Map Click Here
"This is about America's energy security. It's also about preventing strategic
inroads by those who don't share our values. We're trying to move these newly independent
countries toward the west. We would like to see them reliant on western commercial and
political interests rather than going another way. We've made a substantial political
investment in the Caspian, and it's very important to us that both the pipeline map and the politics come out right."
Bill Richardson 1998, US
energy secretary,
on US policy on the extraction and transport of Caspian oil
'A discreet deal in the
pipeline - Nato mocked those who claimed there was a plan for Caspian oil'
Guardian,
15 February 2001
"The United States, starting with
the President, has made this a high object for U.S. foreign policy. As the President said
the other day, these pipelines are not often in the
U.S. headlines, but the impact that they can have
for world energy markets, the impact that they will have for U.S.
energy security, the impact that they can have for
regional security and security on the eastern
flank of NATO and Europe, it’s a profound
impact. It may be 10 or 20 years before we’re actually able to gauge the benefit that
this multiple pipeline strategy will have."
'Press Briefing by Senior Administration Official on Caspian Sea Diplomacy and the
Baku-Ceyhan Pipeline'
FDCH Federal Department and Agency Documents ,
17 November 1999
EU Has Similar Objectives To US
"The project envisages construction of
a new spur from Delnice to Trieste, 100 kilometers long, and conversion of the Omisalj port into the leading spot-market
for resale of oil in the Mediterranean [Adriatic]..... One should recall that Milosevic
did not end up in the Hague only as a war criminal, but above all because with his
policies he stood in the way of a new network of Euro-Asian
oil pipelines. His political
fate was sealed in Zagreb, where two years ago a large ministerial-business conference of
the EU INOGATE program was held. A hundred
days later, Milosevic was not in power anymore, and at the time of the signing of a new oil pipeline from
Constanta to Trieste he was already on the way to the Hague,
supposedly by chance."
Mega Pipeline Becomes Reality
Novi List (Croatian Newspaper), 23 July 2002
"The Council believes that the
Caspian Basin could make a major contribution to global oil and gas supplies within a
decade. The EU has an interest in promoting the exploitation of the region's reserves. It
will continue to encourage regional stability, including a peaceful resolution of
conflicts, and the development of robust democratic and economic institutions. Investment
by European companies, particularly in the energy sector, will be a major factor. The EU
will actively help to safeguard those interests. The Council considers that secure export
routes for Caspian oil and gas will be crucial to the future prosperity of the region, to
the foreign companies investing in exploitation of those reserves, and to international
markets. The construction of multiple pipeline
routes is therefore logical and desirable. Foreign investors will need to take account of
all the relevant factors - political, geographical and financial - in reaching strategic
decisions on pipeline routes. The Council believes
that the timing of those decisions and the specific routes chosen should remain
essentially a commercial one for the companies concerned. The Council also attaches
importance to revitalising the existing regional pipeline network. In this context, the European Union's Interstate Oil and Gas Transport to
Europe Programme (INOGATE) should be an important contribution to ensuring security of
supplies . The EU will also continue to support the
development of transport links and networks in the region, notably through the
infrastructure projects linking Europe, the Caucasus and Central Asia (TRACECA)."
EU Council of Ministers Press Release
2085th Council meeting, Luxembourg, 27 April
1998', RAPID, 11 May 1998
"Even as the Soviet Union was in its
final death throes, in June 1990 at an EU summit, Dutch Prime Minister Ruud Lubbers
broached the idea of a European-wide energy community which would 'capitalise on the
complementary relationship between the European Economic Community, the USSR and the
countries of Central and Eastern Europe'. With
this 'Lubbers Plan', as it became known, the EU was running for Caspian energy even before
the starting pistol had been fired! The Lubbers Plan and a plethora of EU aid programmes
to eastern Europe and the former Soviet Union were motivated by the bottom line of
European energy security. Europe was already heavily dependent on the region for gas in
particular, and so, in the short term, the complete economic collapse of one of its main
energy suppliers could spell trouble. At the same time, the newly opened-up resources of
the Caspian region presented the EU with an opportunity ultimately to strengthen its
longer-term energy security. Firstly, continued and further exploitation of these energy
resources would require large investments from the West. Secondly, the fragmentation of a
once centrally-controlled energy transit system stretching from Central Asia to eastern
Europe would require some kind of knitting back together. The Lubbers Plan evolved into
the Energy Charter Treaty (ECT), a multilateral agreement - from an early stage including
countries beyond Europe and the former Soviet Union - designed to provide a legal
framework within which these basic aims could be pursued, with various EU programmes
springing up to aid their implementation.....Over the last decade, the EU has run a
battery of aid programmes aimed at advancing its energy security interests in the Caspian
and Black Sea regions and the Balkans. TACIS (Technical Assistance to the Commonwealth of
Independent States and Georgia) emerged soon after the break-up of the Soviet Union as a
way to economically stabilise the region and initiate longer term relations with the New
Independent States. Given the need for infrastructure as a precondition for the
exploitation of the region's energy resources, TACIS spawned two network infrastructure
programmes, TRACECA and INOGATE, under its Inter-state programme..... TRACECA (Transport
Corridor Europe-Caucasus-Asia) was set up in 1993, following a proposal by Georgian
President Eduard Shevardnadze, to create 'a transport/trade corridor on an east-west axis
from Central Asia, across the Caspian Sea, through the Caucasus, across the Black Sea to
Europe.' 45 The programme
organised a large international conference in Baku in 1998, taking the East-West transport
initiative away from Russia. 46
Without the need for infrastructure development to support energy sector
operations and energy transit, TRACECA would most likely never have got off the ground;
according to Azerbaijani State Oil Company President Natig Aliyev '[t]he fundamental issue
of the TRACECA project is the production and transport of energy resources.' 47 For example, under the TRACECA
programme, the EU has loaned $25m to Azerbaijan to upgrade its port near Baku 'to allow up
to 500,000 bbl/d of oil shipments from the eastern Caspian.'. INOGATE (Interstate Oil and
Gas Transport to Europe) was launched in 1995 specifically 'to promote the security
of energy supplies', involving work on 'revitalisation of the existing transmission
network and on new oil and gas pipelines across the Caspian, Black Sea region and
westwards to Europe… and protection of foreign investments.'
Concluding an INOGATE conference, Hans van den Broek described the
programme's 'ultimate objective' as being 'to help free the huge and gas and oil reserves
of the Caspian Basin by overcoming the institutional, technical and financial bottlenecks
which have impeded access to local and European markets.' 50
The programme has done this firstly by funding feasibility studies of the
various options for transporting Caspian oil and gas to central and eastern Europe.51 Under INOGATE, the EU has supported
studies of ways to export gas from Shah Deniz, of possible Armenian routes to export gas
from Turkmenistan, and of the condition of the Druzhba oil pipeline network, and was
behind the development of a pipeline from the Azeri port of Baku to the Georgian port of
Supsa..."
A Meeting of Blood and Oil: The Balkan factor
in Western energy security
Journal of Southern Europe and the Balkans,
Vol.4, No.1, May 2002, pp.75-89
"As highlighted in the European
Commission's Green Paper on the Security of Energy Supply, the European Union has a
specific interest in the extensive oil and gas reserves of the Caspian Basin which will,
in the future, contribute to security of supply in Europe. Discussions on energy
cooperation between the European Union and Azerbaijan have started in the framework of the
PCA, in addition to energy related technical assistance performed under Tacis. First time
the energy cooperation between the EU and Azerbaijan in the form of the dialogue took
place during the third meeting of the EU-Azerbaijan Sub-committee on Trade and Economic
Issues, in Baku on 14-15 March 2003. The priorities of energy dialogue are following: -
facilitating the transportation of oil and gas from Azerbaijan; - security of
transportation of hydrocarbons; - creation of common rules and standards for the
transportation of Azerbaijani oil and gas to Europe; - improvement of investment
conditions for the EU companies in Azerbaijan; - harmonization of Azerbaijani legislation
with rules of the internal market for electricity and gas of the EU; - continuation of
reforms in the oil and gas production. The TRACECA — Transport Corridor Europe
Caucuses Asia was initiated in Brussels in May 1993. The trade and transport ministers
from the five Central Asian republics and three Caucasian republics namely Armenia,
Azerbaijan, Georgia, Kazakhstan, Kyrghyzstan, Tajikistan, Turkmenistan and Uzbekistan
decided to run the European Union funded Technical assistance program aimed towards the
development of the transport corridor from the west across the Black Sea, through the
Caucasus and the Caspian Sea to Central Asia. Later on in 1996 the Mongolia and Ukraine
and in 1998 Moldova joined the Traceca....An international conference held in September
1998 in Baku on the initiative of Azerbaijan will undoubtedly play an important role in
the further global development of the Great Silk Road. Participants in the conference
discussed practically every way possible of implementing the project for the revival of
this historically significant and profitable transport corridor, and made the necessary
recommendations, which are now being successfully carried out.... It is a well-known fact
that the European Union is greatly dependent on external energy supplies. Currently, 50%
of its energy requirements are being met through imports. If current trends persist, not
only will this figure rise to about 70% in 2030, but the EU’s dependence on oil and
gas will also be greater. The Green Paper: Towards a European strategy for the security of
supply, presented by the Commission for debate on 29 November 2000, outlines a long-term
EU energy strategy aiming at a diverse, secure, environmentally friendly and
cost-effective EU energy supply. This strategy entails two strategic directions: first,
controlling the growth of demand and second, the management of supply dependence. In
managing supply dependence, one of the main issues to be addressed is ensuring external
energy supplies through strengthened supply networks. So, the ways (both in the
geographical and the technical sense) in which energy is transported is of fundamental
importance for the security of supply. The rehabilitation of existing and the construction
of new oil and gas pipelines will make it possible to import oil and gas from the Caspian
Sea Basin and the Southern Mediterranean region, thereby improving security of supply by
diversifying geographic sources of supply. The INOGATE Program’s overall
objective is to promote integration of the oil and gas pipeline systems and facilitating
their transport towards the export markets of Europe and the West in general. Developed
within the institutional 'pillar' of the INOGATE Program, the INOGATE Umbrella Agreement
(UA) is an interstate agreement that sets out an institutional system designed to
rationalize and facilitate the development of interstate oil and gas transportation
systems and to attract the investments necessary for their construction and operation. To
date, it has been signed by 21 states from Central Asia, Caucasus, Eastern Europe and the
EU."
Energy Dialogue
Mission
of Azerbaijan to the European Union, 15 January 2004
"With a highly developed oil pipeline
system, Ukraine plays an important role as a transit country for Russian oil exports to
Europe. The oil trunk line system has a total length of 4,520 km and is activated by 31
pumping stations. The annual input capacity of the system is 120,000,000 tons, and the
output capacity is 67,000,000 tons. Via Ukraine's trunk line system crude oil is delivered
from Russia and Kazakhstan to the Ukrainian refineries and also exported to Central
European countries. In Ukraine, crude oil is transported by the "Ukrtransnafta"
Joint-Stock Company, affiliated to the Company and having two subsidiaries, Pre-Dniepro
Oil-Trunk Pipelines (Ukraine's South-Eastern region) and Druzhba Oil-Trunk Pipelines
(Ukraine's North-Western region). During the last five years crude oil volumes transport
by the oil trunk line system have been maintained at 64,000,000 to 65,400,000 tons,
including the transit of 53,000,000 to 56,400,000 tons. Therefore, Ukraine is today not
only a gas transmission, but also an important crude oil transport crossroads of Europe.
As it is known well, it is the Caspian region that seems today to have best outlooks for
oil production growth. Currently, there are about ten options for delivering Caspian crude
oil to the world markets. The transport of oil by the current route via the Black Sea to
the Mediterranean using the Bosporus and Dardanelles is limited due to the traffic
capacity of the straits and environmental concerns. Presently, the Odessa - Brody pipeline
and Pivdenny terminal are the only route for transporting Caspian oil to Europe. The
[Ukrainan] Odessa-Brody oil transportation system is 674 km long, with an annual projected
capacity of 9 to 14.5 million tons and total reservoir capacity of 200,000 cubic meters.
The system development plans provide for the increase of the volume of crude oil
transportation to 45 million tons a year. At the end of 2001, Ukrtransnafta completed the
construction of the Pivdenny oil terminal, which, together with the Odessa -Brody
pipeline, enables the annual transportation of around 9 million tons of oil to the Central
and Southern Europe. The present capacity of the pipeline is limited by the capacity of
two Western Ukrainian oil refineries - OJSC Halychyna and Naftokhymyk Prykarpattya. In
September 2002, Ukrtransnafta announced a tender for a business plan for the operation of
the Odessa - Brody pipeline, linking the major Black Sea port to the Western Ukraine. The
tender was won by Nexant Ltd, Ernst & Young, and PriceWaterHouseCoopers. The Ukrainian
authorities are planning to hold negotiations with Poland and the European Union Member
States in December 2002 regarding the extension of the Odessa-Brody pipeline to
the Polish city of Gdansk. The success of the project would enable diversification of the
sources of supply of crude oil and enhance the reliability of
the world oil transportation system.... Ukraine has an
extensive gas transmission system, which consists of 37,100 km of pipelines, 72 compressor
stations (112 compressor shops) with a total capacity of 5,609 MW, and 13 underground gas
storage facilities. 14,000 km of pipelines have a diameter ranging from 1,020 to 1,420 mm.
The input capacity of the system is 290 billion, and the output stands at 175 billion
cubic meters a year. Ukraine's gas transmission system delivers gas to domestic consumers,
and is the major corridor for Russian gas exports to European countries. Gas transit
levels have been growing over the years reaching 121 billion cubic meters in 2000,
including 109 billion cubic meters to Western and Central European countries and Turkey.
In Ukraine, natural gas transmission tasks are performed by Naftogaz subsidiaries SC
Ukrtransgaz and SJSC Chornomornaftogaz.... The real prospects
for the export of Turkmen [Caspian] natural gas, which has a potential of 50 bcm to 70 bcm
yearly, represent an important element in the diversification of the sources of gas supply
to European countries. It would be most efficient to transit
this gas using the operating infrastructure in Central Asia, Russia and Ukraine. In this
relation, attention should be given to the project relating to the construction of the gas
pipeline from Russia's Aleksandrov Gai to Novopskov, that is, from the Russian-Kazakh to
Russian-Ukraine borders in the same corridor, which is used for the Soyuz gas pipeline. With a 28 bcm capacity, this gas pipeline could serve as a link in the
system through which gas is transported from Central Asia to Europe. It could be built and operated on a multilateral basis, which would
ensure independent and, therefore, secure deliveries of natural gas to European countries.
Thirteen underground gas storage facilities with a working capacity over 30 billion cubic
meters represent an important technological element of Ukraine's gas transmission system.
The underground gas storage network includes four systems: the West-Ukrainian
(Pre-Carpathian), Kyiv, Donetsk and South-Ukrainian complexes. The facilities are used to
regulate daily and seasonal peak flows. At maximum storage and output rates, Ukraine's
storage facilities can transmit 240 million cubic meters of natural gas a day. Connected
by a network of pipelines, the underground gas storage facilities guarantee the reliable
operation of the whole gas transmission system, and provide a stable gas supply to
domestic consumers and transit of Russian gas to Europe. Due
to intensive development of the European gas market, the underground gas storage
facilities located in the Western region of Ukraine could play much more important role in
providing safe and secure gas supplies to neighbouring countries.... On 7 October 2002, Prime-Ministers of Ukraine and Russia signed an
agreement on establishing an international consortium for the management and development
of the Ukrainian oil and gas transportation systems."
INOGATE Umbrella Agreement Ukraine
INOGATE Web Site
"Given the increasing density of the
maritime traffic in the waters around the EU and in the
enclosed Black Sea, it is of utmost importance to give a
higher priority to considering, where economically and technically feasible, the alternative of transporting oil by pipelines...."
Crude Oil Pipelines - INOGATE Maps
INOGATE Web Site
Back To
'Peak' Oil And
Gas
Global Struggle Intensifies In Eastern Europe
One Big Reason Why Bush and
Putin
Are Fighting For Control Over Kiev
www.btinternet.com/~nlpwessex/Documents/WATUkraineBushVPutin.htm
Empires Lock Horns
Over Northern Bridgehead To
The Caspian
As EU Looks On Nervously
NATURAL
LAW PARTY WESSEX
nlpwessex@btinternet.com
www.btinternet.com/~nlpwessex
