
The Burgas-Alexandroupolis pipeline is on the table after the EU embargo on Russian oil and the increase in transit fees for the use of the Bosphorus Strait, writes Al Jazeera, which cites statements from both the Greek Minister of Energy, Kostas Skrekas, and his Bulgarian counterpart Roman Hristov.
Specifically, the Bulgarian minister said: “We have a two-year derogation [from EU sanctions] to buy Russian oil, but after that, we will face problems due to the increase in transit fees through the Bosphorus. So, we have begun discussing the revival of the Burgas-Alexandroupolis pipeline, and its extension north to the ports of Varna and Constanza.”
The pipeline will stretch 280 kilometers from the port of Alexandroupolis to the port of Burgas on the Black Sea and may continue north to the port of Constanza in Romania, Hristov explained.
“We support the project,” Greek Energy Minister Kostas Skrekas stated succinctly, without giving more information about the contacts. On November 22, Kostas Skrekas stated to OT that: “Bulgaria has proposed the specific project to us and we are in discussions”, adding that: “the transfer will take place from the point of the pipeline in Alexandroupoli and its quantities will be transferred to Burgas of Bulgaria”.
The original idea of the Burgas-Alexandroupoli pipeline, which first appeared in 1993, was to flow south, exporting crude oil from the Black Sea to the Mediterranean and beyond.
“The real problem was the delays and congestion in the strait. This is very easy to overcome with a pipeline,” said Michalis Myrianthis, who was involved in the project at the time.
“We wanted to be linked to a major producer for long-term supply… There was a very good relationship with Russia then,” he told Al Jazeera. “I remember we were talking about a second, parallel pipeline.”
In 2007, Greece, Bulgaria and Russia signed a political agreement to build the pipeline, with Russia promising to provide 35,000-50,000 tonnes of oil per year to fill it.
A 650,000-ton terminal at Alexandroupolis would ensure continuous supply to ships.
But Bulgaria pulled out of the project in 2010, citing environmental concerns, with industry insiders telling Al Jazeera it was US opposition to dependence on Russian oil that scuppered the project.
Last October, Turkey gave the pipeline a boost when it raised transit fees for tankers using the Bosphorus quintupled to $4 per tonne of oil, adding about half a percentage point to current oil prices.
Turkey will increase its revenue from transit fees from $40 million to $200 million annually, according to the Daily Sabah newspaper.


Latest News

Fitch upgrades Greece to BB+; outlook stable
The ratings firm also listed the outlook as “stable”

Economist political editor Peet: Risk of Turkey moving towards dictatorship
Peet spoke in the wake of a particularly critical cover story focusing on Turkey in the recent Economist issue

Annual consumption of petroleum products in Greece mostly unchanged in 2021 from 2020
Heating oil drops

Rising costs of construction materials threaten Greek real estate sector
The development threatens to dampen or even freeze the construction of all types of new buildings

No confidence vote against Mitsotakis gov’t fails to pass; majority bloc unscathed
Voting against the motion were deputies of center-right New Democracy

Bank of Greece: €3.486 billion increase in funding flow in December
Increase in loans to businesses but not to individuals

In 2023, direct flights from the USA will bring more than 1 billion euros revenues to Greece
So far, 56 flights per week have already been announced from the US and Canada

Morgan Stanley: Continuation of the “rally” of Greek banks
What it predicts for profitability and dividends

Greek PM Mitsotakis’ meeting with the executive director of the ESM
During the meeting special reference was made to the high growth rates, resilience and upward dynamics of the Greek economy

Greek power demand down for sixth straight month
What do the data processed by the Independent Power Transmission Operator show?