Rafał Miland (PERN): extension of the Pomeranian Pipeline will increase the reliability of deliveries

Rafał Miland (PERN): extension of the Pomeranian Pipeline will increase the reliability of deliveries

"We want to build the second branch of the Pomeranian Pipeline, because it will increase the reliability of deliveries carried out by PERN, but also strengthen their security on a regional scale", explained the Vice-President of PERN and Vice – Chairman of the Board of Directors of CEEP, Rafał Miland, in a recent interview with Biznes Alert. (EXTRACT)

What will be the role of European funds in your infrastructure projects?

The list of Projects of Common Interest is the construction of the second branch of the Pomeranian and Odessa-Brody-Gdańsk pipelines. For now, the European Commission is reluctant to this kind of investment because it recognizes that the oil market is competitive and does not need support. However, this approach may change. We want to build the second branch of the Pomeranian Pipeline, because it will increase the reliability of deliveries carried out by PERN, but also strengthen their security on a regional scale. Refineries have to get raw material on time, and often it is raw material of different species with different characteristics. Our role is to meet customer requirements. That is why we have put this project in our strategy. We will manage even without the EU funds, reaching for commercial financing. We are done with talks with banks and we have the potential to raise funds for this purpose. However, I do not want to prejudge this in the preparatory phase in which we are now.

How is the second thread supposed to improve delivery?

Currently, it is possible to change the type of oil supplied to our customers, but it requires a time-consuming procedure of exchanging the pipeline’s content. Thanks to the second thread, it will be possible to send different types of oil simultaneously in two different directions. This will improve diversification. And interest in various types of oil is reported not only by Polish refineries (parallel to our talk in Naftoport, the delivery of CPC oil ordered by a customer from Germany continues). The new thread is also a matter of security, because of course in the event of a fault in one pipeline, with the help of the other, we can maintain the continuity of supplies.

What about the Odessa-Brody-Gdańsk oil pipeline?

PERN is not the only a shareholder of Sarmatia, and the possible implementation of the project would require specific offers. For now, we have three pipelines from the east, supplies by Naftoport and a plan to build a second branch from Płock in Pomerania. Deliveries to the south towards Brody would probably be a form of diversification, for Poland or for Ukraine, but the billions of costs of this project should be taken into account. It must have economic justification. If you are willing to supply oil on such a route and will be able to offer commercial terms of the contract, we will certainly not reject them.

Full interview: http://biznesalert.com/rafal-miland-pern-poland/