An oil pipeline connecting the northern Greece port city of Thessaloniki to Skopje, the capital of neighboring North Macedonia, is scheduled to commence operation, according to that country’s prime minister, Hristijan Mickoski.

According to Mickoski, who referred to the issue on Wednesday, the pipeline is expected to again operate after 12 years of inactivity by the end of the year.

Hristijan Mickoski

“As a state, we are taking all measures to return this pipeline to operation, which had been almost ruined and has not been maintained for many years; tests are underway, and I believe they have already been completed. The pressure tests on the pipeline should begin, if they have not already started…Therefore, I expect that this pipeline will be put into operation this year,” he said, responding to reporters’ queries in Skopje.

The pipeline was constructed in 2002 and is owned by Vardax, in which HelleniQ Energy holds an 80% stake and the North Macedonia government holds the remaining 20% stake.

The pipeline connects a refinery in Thessaloniki with the OTKA refinery in Skopje. Before it stopped operation in 2013, the pipeline transported crude oil. However, at the time, as Hel.Pe (today’s HelleniQ Energy) deemed that refining at the OKTA facilities was unprofitable.

Instead, it was decided to utilize OKTA’s facilities with the aim of making it a regional supply hub for the western Balkans by changing the use of the pipeline, so that instead of crude oil, it would transport refined products – primarily diesel fuel – which is the fuel with the highest demand in North Macedonia.

Although the pipeline and OKTA’s facilities were modified for the new operation and significant investments were made towards modernization, the pipeline remained inactive due to pending technical issues, licensing, etc.

The reopening of the pipeline is expected to reduce North Macedonia’s supply costs and curb illegal fuel trade in the country.