TDA Supports Constanta to Trieste Oil Pipeline Development

The U.S. Trade and Development Agency (TDA) signed a $202,000 grant today with the Croatian Ministry of Economy to provide funding for a feasibility study on the construction of an oil pipeline from Constanta, Romania to Pancevo, Serbia; Omisalj, Croatia; and Trieste, Italy. This grant is a continuation of TDA's commitment to supporting projects that foster regional economic cooperation and development. The grant was signed by the U.S. Ambassador to Croatia, Mr. Lawrence G. Rossin, and the Croatian Minister of Economy, Mr. Hrvoje Vojkovic. The Serbian Minister of Mining and Energy, Ms. Kori Udovicki, and the Romanian State Secretary for Industry and Resources, Mr. Andrei Grigorescu, acted as witnesses to the signing. The three country representatives met with Ambassador Rossin and the TDA Regional Director for Europe, Mr. Ned Cabot, to discuss how the regional project will proceed.

The project will assess the technical and financial feasibility of constructing a regional oil pipeline that would supply refineries in Europe with crude oil from the Black Sea. Starting at the Romanian port of Constanta, the pipeline would pass through Yugoslavia before crossing through Croatia, intersecting with the Omisalj export terminal. It would then continue on to Trieste, Italy, where it would link up with the Trans Alpine Pipeline (TAL) system that supplies Austria and Germany. A previous TDA feasibility study on this project originally considered a more northerly route through Hungary and Slovenia. This southern route through Croatia may prove to be more cost-efficient. HLP-Parsons will continue to serve as contractor for this work and will contribute an additional $100,867 towards the cost of the study, to bring the total project cost to $302,867.

The U.S. Trade and Development Agency promotes American private sector participation in developing and middle-income countries, with special emphasis on economic sectors that represent significant U.S. export potential. By funding various forms of technical assistance, training grants, feasibility studies, orientation visits, and business workshops, TDA helps American businesses compete for infrastructure projects in emerging markets. In addition, the agency promotes capacity building initiatives and supports U.S. government trade, economic policy and development objectives around the world.

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