Close to the reopening of the Thessaloniki-Skopje oil pipeline – The benefits of the reopening

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The oil pipeline was built in 2002, in order to connect the refineries of Thessaloniki with the refinery of the OKTA company in Skopje, which has been acquired by ELPE

It is close to reopening the Thessaloniki – Skopje oil pipeline.

VARDAX SA, the company that operates the oil pipeline that connects Thessaloniki to Skopje, submitted a request to the Energy Regulatory Authority of North Macedonia, in order to obtain a license for the re-operation of the pipeline, which has remained inactive since 2013.

As the Skopje financial website “Faktor” reports, the request was submitted on November 23.

80% of VARDAX SA belongs to ELPET-BALKANIKI (100% subsidiary of HELLENiQ ENERGY – until former ELPE) and 20% to the state company of North Macedonia, NAFTOVOD.

The pipeline was built in 2002, in order to connect the refineries of Thessaloniki with the refinery of the OKTA company in Skopje, which was acquired by Hellenic Petroleum in 1998.

However, its operation was interrupted in 2013, when the Greek Electricity and Gas Company suspended the operation of the refinery in the neighboring country as economically unprofitable.

In the meantime, the pipeline has been cleaned – as it is no longer used for the transport of crude oil – and in the event of its reopening, it will transport finished petroleum products to North Macedonia.

A “thorn” for the reopening of the 213 km long pipeline is the compensation claimed by ELPE from the state of North Macedonia, in the context of breach of its contractual obligations to buy at least 500,000 tons of oil on an annual basis. For the period 2008 – 2011, this amount amounts to 32 million euros.

The benefits of reopening

The reopening plan foresees the upgrading of the pipeline, for the transport of refined products to North Macedonia, which will be stored in the former OKTA refinery, which in the meantime has been converted into a storage area.

Since 2013, North Macedonia has been supplied with fuel by road, with the consequence that refueling costs are high. Also, transporting fuel by road makes smuggling easier, which “translates” into lost revenue.

On the contrary, with the reopening of the pipeline, North Macedonia could be supplied with high-quality fuel, and at a lower cost. At the same time, HELLENiQ ENERGY could make use of OKTA’s facilities as a fuel handling center in the wider region and mainly towards Kosovo and Serbia.

RES-EMP

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