03 June 2004 12:45
NOVOROSSIISK-SUPSA-CEYHAN PIPELINE TO COST $3.5 BLN - EXPERT
BAKU. June 3 (Interfax) - The cost of building the Novorossiisk- Supsa-Ceyhan pipeline will amount to $3.5 billion,
Georgian International Oil Corporation President Giya Chanturia said.
"GIOC and the Russian company Transneft have set up a joint working group to develop a feasibility study for the
Novorossiisk-Supsa- Ceyhan pipeline. A preliminary feasibility study for this project has already been prepared and
preparation of a detailed feasibility study will take another three to four months. But preliminary research shows that
this will be a very serious project," Chanturia said.
He said that the initial capacity of the Novorossiisk-Supsa-Ceyhan pipeline would amount to 50 million tonnes per
annum, to be subsequently increased to 60 million tonnes.
The economic gain to Russia from the reduction in oil transport
costs alone will amount to $500 million - $700 million per year on
"This project was discussed with the Russian side during a recent official visit to Moscow by Georgian Prime
Minister Zurab Zhvania, and earlier this issue was brought up by Georgian President Mikheil Saakashvili during his visit
to Moscow," Chanturia said.
The Novorossiisk-Supsa-Ceyhan pipeline will be used to transport oil arriving at Novorossiisk through the Caspian
Pipeline Consortium pipeline, in addition to Siberian oil and oil arriving in Novorossiisk by rail from Makhachkala.
However, Deputy Foreign Minister and special presidential
representative for the regulation of the Caspian status, Victor
Kalyuzhny earlier cast doubt on the possibility of laying the
According to the Georgian side, this volume - about 120 million tonnes per annum - is too large to be transported by
tanker through the Bosporus. The Novorossiisk-Supsa-Ceyhan pipeline is being built to solve this problem.
average.
The project should be implemented over two and a half years, including the six-month period for the development of
the feasibility study.
Novorossiisk-Supsa-Ceyhan pipeline. "This is a good idea, but it is impossible to implement. There are two
options - either along the Black Sea coast, or through the Black Sea. No normal person would lay a pipeline along the
Black Sea shore and an underwater pipeline would have negative economic characteristics. Therefore this project is not
being considered in Russia," Kalyuzhny said.
[Interfax] |
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