Oil transportation system of Ukraine, which is being in service of OJSC UkrTransNeft, consists of 18 main oil pipelines (MOP) of total length 4,578.6 km. Annual carrying capacity is: at the inlet – 114 mn tons, at the outlet – 56.3 mn tons – to states of Western, Central, and Eastern Europe, as well as south of Russia. Around 90% of total volumes of Russian gas export are supplied to world markets via Ukrainian territory.
Upon necessity, the system of oil pipelines is capable to fully satisfy the needs of oil refineries, taking into account their highest engineered capacity of 50 mn tons per annum. Operations of oil pipeline system are supported by 51 oil transfer stations, where 176 pumping units work at gross capacity 356.9 ths. kW. Total capacity of storage plants is 1,085 ths. cu. m.
Average service period of MOP exceeds 28 years, while the first built oil pipelines have been already operating for more than 40 years. Over the time of servicing, part of main oil pipelines and technological equipment (up to 70%) has exhausted its resource, depreciated in physical and moral terms and demand upgrading.
The mentioned terms of oil pipeline servicing demand substantial investments (no less than UAH 500 mn annually) to support them in proper technical state, as well as current and capital overhauls, and fulfilling of measures for equipment modernizing and reconstructing. Current system of oil pipelines should be brought to the state corresponding to international standards, which foresees implementation of new technologies and equipment.
However, because of reducing transit services and the heaviest tax pressure, which became a particular burden last year, there is a steady lack of money. It is then hard to implement new energy efficient technologies, pumps with high efficiency, state-of-art facilities for storage plant, automated mechanisms, telemechanics, etc. Besides, the country should start creating strategic oil reserves. Oil policy of the state should not be oriented at constantly evolving risks and threats of fuel deficit, but rather at development of oil complex, which includes oil transportation system too.
Gross volumes of oil transportation in January-December 2007 amounted to 50,904 ths. tons, which was 13.3% (or 5,958.9 ths. tons) more versus corresponding period of last year.
Branches of OJSC UkrTransNeft – Druzhba Main Oil Pipeline transported 26,212.9 ths. tons, which is a 4,520.6 ths. tons increase versus corresponding period of the last year, while Pridneprovskie Main Oil Pipelines – carried 24,691.1 ths. tons (+1,438.3 ths. tons versus January-December of the last year).
Oil transit through the territory of Ukraine amounted to 39,755.7 ths. tons, which suggests a 19.7% rise (+6,545.3 ths. tons) in comparison to the respective period of the last year. At the same time, the volume of oil transported for Ukraine’s own needs amounted to 11,148.3 ths. tons – by 586.4 ths. tons less than in the respective period of the last year.
Transportation mainlines of Ukraine have been loaded by only half, the same situation is observed in the Czech Republic and Slovakia. Loading rate upon Ukrainian main oil pipelines decreased for two reasons. In the last year, oil transit via Ukraine to European countries (Slovakia, Hungary, and the Czech Republic) dropped by nearly 4%. Still a more influencing factor was sharp production decrease at Ukrainian oil refineries – as a result, the volumes of oil transported for domestic consumers plummeted by almost 32%. In the not so far future, oil policy of Russia will become a big determinant in loading the system, transit vector of which is now directed around Ukraine.
Local oil transportation system is fully dependent on Russia, which maintains monopolistic control over oil supplies to Ukraine and its transit to Europe. Under these circumstances, the steps of diversifying supply sources should become a key element ensuring national security.
Geographic location of Ukraine permits involvement of miscellaneous sources of oil supplies by independent ways from Azerbaijan, Kazakhstan, Turkmenistan, countries of Middle East etc., while strengthening its own role as a transit state between oil refining regions of Caspian region countries and important sales markets in Europe.
To prevent destruction of Europe’s most powerful oil transporting system in Ukraine, the state should consider alternative supplies of oil. For this purpose, Odessa-Brody oil pipeline should be built to Plotsk in the next few years, which will be possible, if potential project investor among the owners of Caspian oil would have contracts to sell it to European countries.
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