EU to finance construction of Brody-Adamowo oil pipeline

KYIV, October 15 /Ukrinform/. The European Union intends to finance the construction of the Brody-Adamowo-Zastawa oil pipeline with capacity of 30 million tons/year, Ukrinform reported citing the on-line edition neftegaz.ru.

"A project on the construction of the Brody-Adamowo main pipeline was among 250 projects of energy infrastructure, which will receive 5.85 billion euros for 2014-2020 from the EU budget," the report reads.

Such list was approved by the European Commission on October 14, 2013.

The companies, which hit the list, will be able to qualify for expedited permit process, reimbursement of administrative expenses, access to state and private funding.

The European Commission list includes 140 projects in the electricity sector, 100 projects in the field of gas transportation, as well as several oil projects.

"We need to ensure that our limited resources are used wisely and that the EU money goes to where it can do the most good for European consumers," EU Energy Commissioner Guenther Oettinger said.

He also noted that the EU intends to allocate funds for the modernization of Ukraine's gas transit system (GTS).

"Preparations are underway to attract the European Investment Bank, European Bank for Reconstruction and Development and the World Bank to the modernization of Ukraine's gas transit system. It is progressing well, and I hope that in 2014 we will invest in the gas pipeline," Oettinger added.

The Brody Adamowo-Zastawa project involves the construction of a 371-km-long main oil pipeline between the city of Brody, Lviv region, and the Polish tank farm in Adamowo. The diameter is 820 mm, throughput capacity - 10 million tons/year. The oil-pipeline's capacity can be increased to 30 million tons/year, not immediately, but in 3 stages.

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