From: Bill Howard <[EMAIL PROTECTED]>

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Foreign Affairs Front Page News
Source: kathimerini
Published: 9/01

SOFIA (AFP) - The construction of an oil pipeline across the Balkans
from Bulgaria's Black Sea port of Burgas to Vlore on Albania's
Adriatic coast should begin by the end of the year, the US-led
consortium in charge of the operation said yesterday.

The 890-kilometer (550-mile) pipeline, which will cross the troubled
republic of the Former Yugoslav Republic of Macedonia (FYROM), will
take four years to build, cost 1.13 billion dollars (1.24 billion
euros)  and have a daily capacity of 750,000 barrels of crude oil,
said Ted Ferguson of the Balkan pipeline consortium (AMBO). "I
believe
the decision will be made by the end of the year and real work to
develop the project will begin at the end of the year," he said.

Speaking before a meeting with Bulgaria's Deputy Prime Minister
Kostadin Pascalev, Ferguson said the pipeline was needed as an
alternative to the Bosphorus sea route through Turkey to bring oil
from Central Asia to western markets via the Black Sea.

The Bosphorus shipping route would be insufficient to transport
growing oil supplies of oil coming from the Caspian Sea region, he
said, pointing out that a pipeline linking Kazakhstan to Russia's
Black Sea port of Novorossisk was due to begin pumping in September.

Bulgaria has said it will also back plans for a pipeline linking
Burgas to the Greek port of Alexandroupolis on the Aegean Sea. The
700-million-dollar pipeline would stretch 320 kilometers and
transport
40 million tons of oil annually.

But Ferguson said AMBO's route was a better choice. "We believe that
the port of Vlore is more attractive than the ports in the Aegean Sea
for exports because it's deeper water (and) closer to the areas and
ports where the oil will be sold," he said. Oil arriving in Vlore
would be transported via Rotterdam to the United States, he said.


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