AMBO pipeline was a planned oil pipeline from the

Bulgaria Bulgaria (; bg, България, Bǎlgariya), officially the Republic of Bulgaria,, ) is a country in Southeast Europe. It is situated on the eastern flank of the Balkans, and is bordered by Romania to the north, Serbia and North Macedo ...

Black Sea The Black Sea is a marginal mediterranean sea of the Atlantic Ocean lying between Europe and Asia, east of the Balkans, south of the East European Plain, west of the Caucasus, and north of Anatolia. It is bounded by Bulgaria, Georgia, Rom ...

port of

Burgas Burgas ( bg, Бургас, ), sometimes transliterated as ''Bourgas'', is the second largest city on the Bulgarian Black Sea Coast in the region of Northern Thrace and the fourth-largest in Bulgaria after Sofia, Plovdiv, and Varna, with a pop ...

via the

Republic of Macedonia North Macedonia, ; sq, Maqedonia e Veriut, (Macedonia before February 2019), officially the Republic of North Macedonia,, is a country in Southeast Europe. It gained independence in 1991 as one of the successor states of Yugoslavia. It ...

to the

Albania Albania ( ; sq, Shqipëri or ), or , also or . officially the Republic of Albania ( sq, Republika e Shqipërisë), is a country in Southeastern Europe. It is located on the Adriatic and Ionian Seas within the Mediterranean Sea and shares ...

n Adriatic port of

Vlorë Vlorë ( , ; sq-definite, Vlora) is the third most populous city of the Republic of Albania and seat of Vlorë County and Vlorë Municipality. Located in southwestern Albania, Vlorë sprawls on the Bay of Vlorë and is surrounded by the foo ...

History

The pipeline was proposed in 1993. On 27 December 2004, prime-ministers of Albania, the Republic of Macedonia and Bulgaria signed the latest political declaration, followed by the memorandum of understanding between representatives of Albania, the Republic of Macedonia and Bulgaria and Ted Ferguson, the president and CEO of AMBO. On 30 October 2006, Albania and the Republic of Macedonia signed a protocol to determinate the entrance points of the pipeline. The entrance point will be Stebleve village in Albania and Lakaica village in the Republic of Macedonia. A similar protocol between Bulgaria and the Republic of Macedonia was signed later in 2006. On 31 January 2007, the Republic of Macedonia, Bulgaria and Albania signed a trilateral convention on the construction of the AMBO pipeline. This document was ratified by the Parliaments of all three countries and governed the construction, operation, and maintenance of the pipelines. In 2006, intervention was proposed by Russia (President Putin) with a proposal for a competing pipeline from Burgas to Alexandropoulos in Greece. The financing of this was to be by Russia and was tied to the finance of an Atomic Energy Power Plant. It took at least four years for the Russian proposal to be discarded. By which time shipping in the Bosphorus had settled into an acceptable operation and shippers/investors were reluctant to commit financing.

Description

The aim of the long pipeline was to bypass the Turkish Straits in transportation of

Russia Russia (, , ), or the Russian Federation, is a transcontinental country spanning Eastern Europe and Northern Asia. It is the largest country in the world, with its internationally recognised territory covering , and encompassing one-eig ...

n and

Caspian Caspian can refer to: *The Caspian Sea *The Caspian Depression, surrounding the northern part of the Caspian Sea *The Caspians, the ancient people living near the Caspian Sea *Caspian languages, collection of languages and dialects of Caspian peopl ...

oil. The pipeline was expected to cost about US$1.5 billion and it would have a capacity of . There would be four pump stations, two in Bulgaria and one each in the Republic of Macedonia and Albania, constructed along the route. A pre-front-end engineering and design study (FEED) was to be prepared by KBR. The pipeline was expected to be operational by 2011.

Current Status - 2022

AMBO-Pipeline LTD is taking over the project and has begun the necessary work to begin the environmental study and construction afterwards. Currently, the company has received pre-approvals to privately fund the construction of the project in full; funding will be done in 2 phases. Previously, the project had received funding approval from the EXIM Bank at 25%equity/75%loan and AMBO had failed to secure the $318M USD in 2004 to begin developing the pipeline. Since then, the building costs of the project have increased from $1.3B USD to approximately $1.7B USD. AMBO-Pipeline LTD is attempting to utilise the blockchain technology and NFT smart-contracts as kick starter to secure funds necessary for legal, due diligence and administrative costs to activate the pending loans.

Project company

The pipeline was to be built and operated by the US-registered Albanian Macedonian Bulgarian Oil Corporation (AMBO). The project was backed by the US government, who financed a feasibility study of pipeline.

Alternative projects

Other pipeline projects were the Burgas-Alexandroupoli pipeline from Burgas to the

Greek Greek may refer to: Greece Anything of, from, or related to Greece, a country in Southern Europe: *Greeks, an ethnic group. *Greek language, a branch of the Indo-European language family. **Proto-Greek language, the assumed last common ancestor ...

Aegean port

Alexandroupoli Alexandroupolis ( el, Αλεξανδρούπολη, ), Alexandroupoli, or Alexandrople is a city in Greece and the capital of the Evros regional unit. It is the largest city in Western Thrace and the region of Eastern Macedonia and Thrace. It h ...

, and the

Pan-European Pipeline The Pan-European Oil Pipeline (PEOP) is a proposed oil pipeline from Constanţa in Romania via Serbia and Croatia to Rijeka and from there through Slovenia to Trieste in Italy. The aim of the pipeline is to bypass Turkish straits in the trans ...

from Constanţa in

Romania Romania ( ; ro, România ) is a country located at the crossroads of Central, Eastern, and Southeastern Europe. It borders Bulgaria to the south, Ukraine to the north, Hungary to the west, Serbia to the southwest, Moldova to the east, and ...

Trieste Trieste ( , ; sl, Trst ; german: Triest ) is a city and seaport in northeastern Italy. It is the capital city, and largest city, of the autonomous region of Friuli Venezia Giulia, one of two autonomous regions which are not subdivided into prov ...

Italy Italy ( it, Italia ), officially the Italian Republic, ) or the Republic of Italy, is a country in Southern Europe. It is located in the middle of the Mediterranean Sea, and its territory largely coincides with the homonymous geographical ...

. Compared with Burgas-Alexandroupoli pipeline, the AMBO pipeline would be longer and more expensive, but Vlorë (which is a sheltered, deep-water, all-weather port) could accommodate larger tankers and is more accessible than Alexandroupoli. Also, an oil spill in the Aegean would have a negative influence on Greece's tourism industry.

References