By Chryssa Liaggou
The signing last Thursday, in Athens, of the tripartite agreement (between Bulgaria, Greece and Russia) for the construction of the Burgas-Alexandroupolis oil pipeline makes Greece an indispensable link in the global hydrocarbon supply chain. In 2011, 35 million tons of crude oil (to be increased to 50 million eventually) from the oilfields of Russia, Kazakhstan and Azerbaijan will pass annually through the port of Alexandroupolis, in northeastern Greece, on the way to the big consumers in the West.
In order for Greece to make a showing on the global energy map, it took the business vision of the Latsis, Kopelouzos and Hellenic Petroleum groups, the unflagging support, over 14 years, of the various governments and ministers in place – current Development Minister Dimitris Sioufas referred to all his predecessors on Thursday – but, above all, Russia’s determination. This determination became apparent last September when Russian President Vladimir Putin personally committed himself to the completion of the project before his Bulgarian and Greek partners.
Putin’s determining role notwithstanding, it was a Greek, Nikos Grigoriadis, who first thought of the project as a means to bypass the Bosporus Strait, whose saturation as an oil transit route he correctly predicted. The “Orthodox Pipeline,” so called by the patriarch of Moscow who gave his blessing to the project in 1994, or, as Putin called it, the “Trans-Balkan Pipeline,” for some years a controversial project, has met with the approval of the international community, with the exception of Turkey, which had propose an alternative route linking its ports of Samsun, in the Black Sea, to Ceyhan, in the Mediterranean, where the Baku-Ceyhan pipeline also terminates.
USA satisfied
The USA also expressed its approval of the project, since it facilitates the plans of oil giant Chevron, which controls oilfields in Kazakhstan and wants a safe route for its oil.
Chevron has also expressed its wish to take part in the construction of the pipeline. According to sources, a top-ranking Chevron manager has visited Sioufas at least three times to discuss Chevron’s acquisition of part of the stake that the Greek HELPE-Thrace consortium will own in the company to be set up to build and operate the pipeline.
At present, the plans are for the Greek consortium to own 24.5 percent, a Bulgarian consortium another 24.5 percent and a Russian one the remaining 51 percent.
Within the next month, ministers from the three countries will meet with representatives of private companies to set up the international firm that will operate the pipeline. The company will the sign separate agreements with Bulgaria and Greece, allowing the pipeline to cross the two countries and setting the transit fees. The existing timetable calls for construction to begin in the first half of 2008 and finish by 2011. However, Sioufas said that Putin told him the pipeline could be built within 18 months and become operational in 2009.
Gas project
Russia, the most important producer of natural gas, is also seeking a strategic partnership with Greece to help export gas to Western Europe through an additional route. The planned pipeline – to pass from Turkey through Greece to Italy – was conceived about seven years ago with the blessings of the European Union and the USA, as a way to lessen Europe’s dependence on Russian gas, since it would carry natural gas from the Caspian countries (mainly Azerbaijan).
The Greek section of the pipeline will be completed in June. When the connection to Italy is completed, the pipeline’s capacity will be 11 billion cubic meter.
The Russians first expressed their interest in, at least partly, filling the pipeline with their own gas early last year, through contacts with Greece and Italy. This had brought an immediate US reaction, with Secretary of State Condoleezza Rice asking Greece not to contribute to an increased European dependency on Russian gas.
However, European demand for gas is growing and there is a delay in the availability of gas from Azerbaijan. Russian gas is the only fuel readily available.
(Kathimerini, 19/03/2007)