April 2010
Burgas – Alexandroupolis
Pipeline
1
Pipeline
Christos DimasGeneral Manager HELPE S.A.-THRAKI S.A.
Director TBP Greece
Greek-Bulgarian Cooperation in the Energy Sector
Sofia, Thursday April 29, 2010Organized by the Institute of Energy for South
East Europe (IENE) in association with the Hellenic Business Council in Bulgaria (HBCB)
April 2010
Russian and Caspian Main Oil Fields
Taishet
Barents Sea
Timan Pechora
East
Siberia
West Siberia
Sakhalin
2
Dqing
Baku-
Legend
Major Oil basins
Caucasus & Caspian
Volga Urals
Tengiz
Kachagan
April 2010
Russian and Caspian Main Crude Export Routes
Primorsk
Murmansk
Barents Sea
Timan Pechora
East Siberia
West Siberia Far East &
Sakhalin
3
TaishetScovorodino
Daqing
Kozmino
Alashankou
Atasu
KumkolKenkiyak
Baku
Novorossiysk
Ceyhan
Burgas-Alex/lis
LegendExisting crude pipelines
Planned crude pipelines
Major Oil basins
Caucasus & Caspian
Volga Urals
Tengiz
Odessa
Supsa
April 2010
Russian and Caspian Crude Oil Production(Million Metric Tons)
500
600
700
800
TURKMENISTAN
AZERBAIJAN
KAZAKHSTAN
RUSSIA
4
0
100
200
300
400
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
April 2010
Russian and Caspian Crude Oil Exports(Million Metric Tons)
400
500
600
TURKMENISTAN
AZERBAIJAN
KAZAKHSTAN
RUSSIA
5
0
100
200
300
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
April 2010
OIL CONCENTRATION IN THE BLACK SEA
6
OIL CONCENTRATION IN THE BLACK SEA
AND THE BOSPORUS STRAITS
April 2010
Youzhnaya Ozereevka
Novorossiysk
Youzny
FeodosiyaKavkazKerch
Balance of crude oil flow shipped through the Black Sea and the Bosporus Straits during 2008 (Million Metric Tons)
Novorossiysk
Tuapse
Total Crude Oil Shipped105
10
Legend– Actually mln tons shipped in 2008 / Terminal throughput capacity mln tons / year 2009
Supsa
April 2010
Youzhnaya Ozereevka
Novorossiysk
Youzny
FeodosiyaKavkazKerch
Balance of crude oil flow shipped through the Black Sea and the BosporusStraits during 2009 (Million Metric Tons)
Novorossiysk
Tuapse
Batumi
Total Crude Oil Shipped116
Approx.10
Legend32,6 / 32 – Actually mln tons shipped in 2009 / Terminal throughput capacity mln tons / year 2009
Supsa
Total Black Sea Ports Crude Oil Export Capacity in 2009 153 Million Metric Tons)
April 2010
9,5
11,4
9,6 10,716
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
Days
S/B Delays
N/B Delays
Actual Monthly Average Tanker Delays in the Straits - Winters
(Net waiting time of tankers > 200 m LOA passing in transit - Round trip)
20,3 d
13,5 13,3
Traffic system improvements
applied in the Straits since Nov.
10 d
9
5,2
10,7
16,9
18,6
12,3
3,5
6,9
4,96,4
4,3
2,13,4
10,812,0
8,0
2,64,2
7,5
11,210,0
3,3
6,3 5,7
3,1
5,4
2,33,3 3,7 3,7
4,9
2,2
5,4
7,4 7,8
2,9
3,2
7,95,5
3,1
5,1
3,5
4,5
3,3
1,7
3,0
8,7
9,6
8,1
2,7
4,1
5,6
10,7
7,8
2,5
5,55,8
2,9
4,5
1,8
3,03,5 2,9
3,9
1,9
5,1
6,76,9
3,4
0
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
Οκτ.0
3
Νοε.
03
∆εκ
.03
Ιαν.0
4
Φεβ
.04
Οκτ.0
4
Νοε.
04
∆εκ
.04
Ιαν.0
5
Φεβ
.05
Oct
.05
No
v.0
5
Dec
.05
Ιαν.0
6
Φεβ
.06
Oct
.06
No
v.0
6
Dec
.06
Ja
n.0
7
Feb
.07
Oct
.07
No
v.0
7
Dec
.07
Ja
n.0
8
Feb
.08
Oct
.08
No
v.0
8
Dec
.08
Ja
n.0
9
Feb
.09
Oct
.09
No
v.0
9
Dec
.09
Ja
n.1
0
Feb
.10
9,1
9 d6.6 d
10 d
April 2010
Flows of Eurasian Crude Oil Through the Bosporus(Million Metric Tons)
120
140
160
180
200
High Scenario
Base Scenario
10
0
20
40
60
80
100
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
April 2010
Black Sea Crude Oil Export Alternatives Bypassing the Straits
A. Odessa – Brody –
Baltic Sea
B. Constantza – Trieste
C. Burgas – FloreTrieste
Brody
Feneshlitkye
Unecha
Samara
Tscheljabinsk
from Surgut
Plotsk
Gdansk
existing pipeline
planned pipeline
Tanker transport
Karatschaganak
OVERVIEW MAP
CRUDE CRUDE OILOIL EXPORTEXPORTCHAINSCHAINS
Atyrau
Oil Field
Trieste
Brody
Feneshlitkye
Samara
Tscheljabinsk
from Surgut
Plotsk
Gdansk
TO CH
INA
Atyrau
Baltic Sea
A
Primorsk
Ventspils
Buting
Unecha
TO CHINA/JAPAN
THROUGH SIBERIA
Trieste
Brody
Feneshlitkye
Unecha
Samara
Tscheljabinsk
from Surgut
Plotsk
Gdansk
existing pipeline
planned pipeline
Tanker transport
Karatschaganak
OVERVIEW MAP
CRUDE CRUDE OILOIL EXPORTEXPORTCHAINSCHAINS
Atyrau
Oil Field
Trieste
Brody
Feneshlitkye
Samara
Tscheljabinsk
from Surgut
Plotsk
Gdansk
TO CH
INA
Atyrau
Baltic Sea
A
Primorsk
Ventspils
Buting
Unecha
TO CHINA/JAPAN
THROUGH SIBERIA
11
D. Burgas –Alexandroupolis
E. Kiykoy – Ibrice
F. Samsun - Cheyhan
Kurmangazy
Augusta
Trieste
Omishali
Feneshlitkye
Odessa
Constanta
BurgasAlexandroupolis
Ceyhan
Baku
Supsa
Novorossiysk
Tengiz
ToUS-Market
Sisak
Vlore
Aktau
Kashagan
Makhachkala
Tehran
Tikhoretsk
Batumi
CPC Pipelin
e
Atyrau
Neka Port
Tuapse
A. C. G.Mega Structure
Augusta
Omishali
Feneshlitkye
Odessa
Ceyhan
Baku
Tengiz
Sisak
Vlore
Makhachkala
Tehran
Samsun
Atyrau
Neka Port
Tuapse
Alexandroupolis
B
C
D E
F
A
Kashagan
Kurmangazy
Supsa
Tikhoretsk
NovorossiyskConstanta
Aktau
Mega StructureA. C. G.
Black Sea
To
USA and
North Europe
Kiykoy
Ibrice
Burgas
Kurmangazy
Augusta
Trieste
Omishali
Feneshlitkye
Odessa
Constanta
BurgasAlexandroupolis
Ceyhan
Baku
Supsa
Novorossiysk
Tengiz
ToUS-Market
Sisak
Vlore
Aktau
Kashagan
Makhachkala
Tehran
Tikhoretsk
Batumi
CPC Pipelin
e
Atyrau
Neka Port
Tuapse
A. C. G.Mega Structure
Augusta
Omishali
Feneshlitkye
Odessa
Ceyhan
Baku
Tengiz
Sisak
Vlore
Makhachkala
Tehran
Samsun
Atyrau
Neka Port
Tuapse
Alexandroupolis
B
C
D E
F
A
Kashagan
Kurmangazy
Supsa
Tikhoretsk
NovorossiyskConstanta
Aktau
Mega StructureA. C. G.
Black Sea
To
USA and
North Europe
Kiykoy
Ibrice
Burgas
April 2010
By-pass Pipeline
Length(Km)
Pros / Cons
A Odessa – Brody –Plock – Gdansk
1.480 High investment; Export terminals in Gdansk & Rostock can be used; Problem again with the Danish Straits
B Constanza –Trieste Pipeline
1.375 Relatively high initial investment requirements, direct pipeline supply of Central European refineries with Caspian light grades through the Trans Alpine Pipeline (TAL)
C Burgas – Vlore 913 Long and mountainous route, relatively high initial investment requirements, supply to refineries along the route in FYROM & Albania,
Black Sea Crude Oil Export Alternatives Bypassing the Straits
12
C Burgas – VlorePipeline (AMBO)
913requirements, supply to refineries along the route in FYROM & Albania, challenging financing due to political risk
D Burgas –Alex/polisPipeline (BAPLine)
256 Short route, smooth terrain, relatively low initial investment requirements; Studies and design ready; Permits incl. EIA first stage finished, therefore fast implementation feasible; Diversification of oil routing. Cost efficient comparable with the Straits; European Union corridor.
E Kiyikoy – Ibrice Pipeline
200 Short route, smooth terrain, relatively low initial investment requirements; Russian and Caspian Black Sea exports depending on one country.
F Samsun – Ceyhan Pipeline
550 Long and mountainous bypass route, Russian, Caspian and Black Sea exports depending on one country, use of BTC pipeline corridor / supply to Kirikkale refinery
April 2010
BURGAS – ALEXANDROUPOLIS PIPELINE
13
BURGAS – ALEXANDROUPOLIS PIPELINE
April 2010
PROJECT BACKGROUND1993-1994 Athens • Establishment of THRAKI S.A, which is the initiator and promoter of the project..
Feb. 1998 Athens • Establishment of the J/V HELPE S.A. – THRAKI S.A., the Greek participant in the
project.
Jan. 2002 Project Studies • Extensive studies completed by ILF Consulting Engineers.
Nov. 2004 Athens • Political Memorandum initialed among Bulgaria, Greece and Russia.
Jan. 2005 Moscow • Legal and economical transit framework initially agreed.
• Group of Initiating Companies (GIC) created.
Apr. 2005 Sofia • Russia, Bulgaria and Greece signed a Memorandum on cooperation.
14
Sep. 2006 Athens • Russia, Bulgaria and Greece signed a Trilateral Declaration of Cooperation.
Mar. 2007 Athens • Russia, Bulgaria and Greece signed an Intergovernmental Agreement.
6 Feb. 2008 Amsterdam • Incorporation of the International Project Company of the Project “Trans-
Balkan Pipeline B.V.” in Netherlands.
Oct. 2008 • Project Studies Update awarded to ILF
2009 • Elaboration of the technical studies
• Preparation of the environmental studies
• Public consultation procedure
• Transportation Agreement issues
2010 • Completion of Project Technical studies expected by the end of June 2010.
• Planned submission of ESIA to the Ministries in both countries for
approval
• Transportation Agreement Issues
April 2010
PRELIMINARY PROJECT CHARACTERISTICS FOR A CAPACITY OF 35 ÷ 50 MTA
Pipeline
Burgas
• Main Pipeline Length: 256 km
• Overall Pipeline Length: 336 km
• Main Pipeline Diameter: 42“
• Capacity 35÷50 Mta
• Tank Farm Capacity: 480 ÷ 640.000 m3
15
Alexandroupolis Tank Farm and Marine Facilities
BurgasTank Farm and Marine Facilities
• Tank Farm Capacity: 480 ÷ 640.000 m3
• Marine Facilities: 2 SPMs for 150.000 dwt Tankers each
• Tank Farm Capacity: 900 ÷ 1.200.000 m3
• Marine Facilities: 2 SPMs for 300.000 dwt Tankers each
April 2010
General Indicative Map of the ProjectGeneral Indicative Map of the Project
16
April 2010
Location Options Jetty/SPMs (Burgas)
17
April 2010
Studied Alternatives in Alexandroupolis
18
April 2010
Location Option (Alexandroupolis)
19
April 2010
� Environmental Studies under review
� Finalization of Technical studies in June 2010
� Submission of the Environmental studies to the ministries in both
Countries for approval
CURRENT ACTIVITIES (2010)
Countries for approval
� Public Consultation Procedures and Query Management Procedure
� Transportation Agreement
FUTURE ACTIVITIES
� HGA issues
� Detail design
� Permitting / Land acquisition issues
� Procurement / Construction 20
April 2010
Throughout planning, development and implementation of the project, TBP is
committed to:
�protecting the environment;
�respecting local communities and cultural heritage;
TBP’s Values and Principles
21
�safeguarding public health and occupational health and safety;
�employing best available technologies;
�applying highest safety standards to minimise any risks;
�applying international best practice Environmental and Social performance
Standards to develop the Project, and
�working in a constructive and continuous dialogue with the population in the
project area , PCDP ( Public Consultation and Disclosure Plan), NGOs and
the relevant authorities and other stakeholders.
April 2010
� Public consultations have started since the beginning of the technical studies (November 2008)
� Numerous presentations of the project and consultations took place with various statutory stakeholders, regarding the Technical and Environmental data of the project.
� Public presentations were held in municipalities along the route of pipeline
Public Consultation Disclosure Plan (PCDP)
22
� Public presentations were held in municipalities along the route of pipeline where TBP presented to the local public its studies of the terrain, the environment, information about the current state of the project and of the reviewed alternative facility locations.
� Visit to the CPC Marine International Terminal and Tank Farm in Novorossiysk for representatives of the public and media from Bulgaria and Greece.
� Press conferences and interviews to the press.
� Informative meetings with Ministries and Supervised Organizations/Entities.
� A Query Mechanism has been set up in each country.
April 2010
SOME MAJOR CONSULTANTS OF TBP
� ILF Consulting Engineers
� Environmental Resources Management (ERM)
� Allen & Overy LLP , Law Firm
page 23
� Allen & Overy LLP , Law Firm
� Société Générale, Corporate & Investment Banking
� KPMG, Audit Advisor
� Deloitte & Touche (DT), Tax Consultant
� Cambridge Energy Research Associates(CERA)
� Local Consultants for Bulgaria/Greece