Samsun–Ceyhan pipeline explained

Samsun–Ceyhan pipeline should not be confused with Trans-Anatolian gas pipeline.

Samsun–Ceyhan pipeline
Type:oil
Map:Samsun Ceyhan pipeline.png
Country:Turkey
Operator:Trans-Anatolian Pipeline Company
Partners:Eni, Çalık Enerji, Rosneft, Transneft,
Length Km:550
Direction:north–south
Start:Ünye
Finish:Ceyhan
Est:2014
Through:Tokat, Sarız, Göksun, Andırın, Kadirli
Par:Baku–Tbilisi–Ceyhan pipeline

The Ünye–Ceyhan pipeline, commonly known with its former name, the Samsun–Ceyhan pipeline, was a planned crude oil pipeline traversing Turkey from the Black Sea to the Mediterranean oil terminal in Ceyhan. The aim of the project was to provide an alternative route for Russian and Kazakhstani oil and to ease the traffic burden in the Bosporus and the Dardanelles. The project was halted in 2010. This was confirmed again in 2013.

History

The Samsun–Ceyhan pipeline was planned as a Bosphorus bypass. At the beginning of the 2000s, Tun Oil filed for construction of a pipeline from Samsun through Sivas to Ceyhan.[1] In 2003, the Italian energy company Eni studied possible oil transport routes from the North Caspian area. In 2004, based on the pre-feasibility study, the Samsun–Ceyhan route was selected. Another partner in the project, Turkish company Çalık Enerji, carried out technical and commercial studies, and filed for the construction licence on 31 March 2004. One of the route alternatives involved connecting the Kırıkkale refinery; however, this option was rejected.[1]

On 26 September 2005, Eni and Çalık Enerji signed a Memorandum of Understanding for their joint cooperation in the project. A pipeline feasibility study was completed in March 2006. The construction licence was granted in June 2006.[2] The Front End Engineering Design Phase was completed at the beginning of 2007, and the ground-breaking ceremony, attended by the Italian Minister for Economic Development Pier Luigi Bersani and the Turkish Minister for Energy and Natural Resources Hilmi Güler, was held in Ceyhan on 24 April 2007.[3] On 13 September 2007, the pipeline was rerouted to start from Ünye instead of Samsun and end at Yumurtalık, although it would still pass through Ceyhan. The new route shortened the pipe by 100km (100miles).[4]

On 19 October 2009, at a ceremony held in Milan, Italy, Russia and Turkey signed an intergovernmental agreement guaranteeing a stable regulatory framework and agreeing to the participation of Russian oil companies in the pipeline project. At the same ceremony, Eni and Çalık Enerji signed a Memorandum of Understanding with Transneft and Rosneft to include Russian companies in the development of the project.[5] [6] On September 2010, however, Transneft president Nikolay Tokarev said in an interview that work on the project was halted due to "many questions marks about [the pipeline]".[7]

On 27 March 2013, Turkish energy minister Taner Yıldız announced that Eni would not be allowed to go forward with the project due to company's plans for the natural gas exploration off Cyprus, and that the pipeline's project may be suspended if Çalık continues their partnership with Eni.[8] A month later, in April 2013, the Russian Minister of Energy Alexander Novak said that the project wasn't "economical enough".[9]

Technical features and financing

The project consists of the new unloading terminal and tank farm, a pipeline from the Ünye terminal to Ceyhan, and additional storage capacity in Ceyhan.[2] [10] It will be connected with the existing Ceyhan loading terminal.[2]

The length of the pipeline will be . Starting from Sarız, the pipeline will follow the Baku–Tbilisi–Ceyhan pipeline's corridor. The diameter of the pipe will vary from 42inches to 48inches. It will have four pumping stations and one pressure-reducing station. The designed capacity is and initial capacity is 1Moilbbl/d. The tank farm in Samsun will have a storage capacity of 6Moilbbl and the additional tank farm in Ceyhan .[2]

The pipeline is scheduled to become operational in 2012.[11] The project costs are expected to be around $2 billion.[12]

Pipeline company

The pipeline will be constructed, owned and operated by the Trans-Anatolian Pipeline Company (TAPCO), a joint venture of Eni and Çalık Enerji incorporated in Turkey.[13] In 2006, it was announced that Indian Oil Corporation will have a 12.5% stake in the project; however, this deal was not completed.[13] Also Royal Dutch Shell and Total S.A. had expressed their interest in the project.[1] In 2009, it was decided that the new partners in the project will be Rosneft and Transneft, while Lukoil and Kazakhstan have expressed interest in participating in the project.[14]

Environmental impact

Ships passing through the Turkish Straits (the Bosporus and the Dardanelles) currently carry 120Moilbbl of crude oil annually. This figure is expected to exceed 250Moilbbl in the next 10 years. Tanker traffic in the Straits is expected to decrease by 50% when the Samsun–Ceyhan pipeline becomes operational.[15] [16]

See also

Notes and References

  1. Web site: Centre for Global Energy Studies . New partners sign up for Black Sea-Mediterranean pipeline . Julian Lee . 2006-12-11 . 2009-10-25.
  2. Web site: . Trans Anatolian Pipeline Project . October 2006 . 2007-04-26.
  3. Eni . Eni: ground breaking ceremony for Trans Anatolian Pipeline Project . 2007-04-24 . 2007-04-26 . https://web.archive.org/web/20070927030859/http://www.eni.it/eni/internal.do?menu=true&RID=%402yQCv%7C0%3FxoidcmWopk&catId=-1073763205&cntTypeId=1008&portalId=0&lang=en . 2007-09-27 . dead.
  4. Web site: Samsun-Ceyhan Boru Hattı Diye Bir Proje Yok. 7 August 2009. OdaTV.
  5. News: . Capital.gr . Eni, Calik, Rosneft Sign Turkey Oil Pipeline MoU . Liam . Moloney . 2009-10-19 . 2013-03-27 . dead . https://web.archive.org/web/20160218150651/http://english.capital.gr/news.asp?id=835229 . 2016-02-18.
  6. News: . Russia to supply oil to Samsun-Ceyhan pipeline . Stephen Jewkes . 2009-10-19 . 2009-10-24.
  7. Web site: Samsun-Ceyhan Boru Hattı Projesi Durdu. 15 September 2009. Cumhuriyet.
  8. News: . Turkey 'cuts ties with Eni' over Cyprus blocks . Bill . Lehane . 2013-03-27 . 2013-03-27.
  9. Web site: Samsun-Ceyhan Boru Hattı Askıda. 21 April 2013. Vatan.
  10. News: . Turkey's Samsun-Ceyhan pipeline shortened, starting point changes . 2008-06-21 . 2009-10-25.
  11. News: . Turkey Happy with Russia's Role in Samsun–Ceyhan Oil Pipeline . 2009-08-07 . 2009-10-25.
  12. News: Oil & Gas Journal . Eni breaks ground on Trans-Anatolian line . 2007-04-24 . 2007-04-26.
  13. News: Alexander's Gas & Oil Connections . IOC acquires 12.5 % stake in TAPCO . 2006-12-21 . 2007-04-26 . dead . https://web.archive.org/web/20080316011159/http://www.gasandoil.com/goc/company/cne65126.htm . 2008-03-16.
  14. News: . Putin: Kazakhstan may take part in Samsun-Ceyhan . Gleb Bryanski, Selcuk Gokoluk . 2009-10-22 . 2009-10-24.
  15. News: . Samsun-Ceyhan Pipeline Scheduled for 2009 . 2006-06-13 . 2007-04-26 . dead . https://web.archive.org/web/20110605045240/http://www.zaman.com/?bl=economy&alt=&hn=34226 . 2011-06-05.
  16. News: People's Daily Online . Turkey to build new oil pipeline to ease burden of Istanbul, Canakkale straits . 2006-06-24 . 2007-04-26.