Verified Document

Role Sumed Pipeline Egypt International Trade Kind Essay

role sumed pipeline EGYPT international trade kind special services customers petroleum sector. notice: references internet . Sumed Pipeline in Egypt

Traditionally, oil would be transported from the Persian Gulf to the Mediterranean region via the Suez Canal, which has also earned a remarkable historic resonance to its name. After a decade of construction, the Suez Canal was first used in 1869 and its aim is that of allowing transportation by water from Asia to Europe, without having to travel around Africa.

The Suez Canal is the traditional choice for transporting goods from one region to the other, and it is open to the access of all vessels, in times of war and peace, regardless of the flags carried by the vessels. Still, a shortage in using the Suez Canal is represented by the delays which can be encountered and the queues that can be created.

As a result of these issues, Egypt has sought out to create an alterative to more efficiently transporting oil and petroleum from Egypt to the Mediterranean region. Specifically, the Sumed pipeline spreads from Ain Sukhna on the Gulf of Suez to Sidi Kerir, in Alexandria and it is often recognized for its ease of usage and the limited occurrence of delays in shipments (Platts, 2011).

The initial cause for the creation of the Sumed pipeline was represented by the closure of the Suez Canal in 1967, which prevented the countries in the region from adequate trade operations. In order to decrease the dependency on the Suez Canal then, the governments in five Arab states created the pipeline company and commenced work in 1973. The Sumed pipeline was first issued into usage in1977 and it continues to play the same role of decreasing dependency on the Suez Canal, and supporting oil trade in the region.

From a technical standpoint, the Sumed pipeline has a...

The capacity of the pipeline is of 2.5 million of barrels of oil per day, which has increased since its 1.1 million barrel per day capacity in 2009 (Strumph and Whittaker, 2011). For the future, the owner looks to further expand the pipeline. The new extension would go from Ain Sukhna to cross the Red Sea up to Sharm al Sheikh.
The Sumed pipeline is owned and operated by the Arab Petroleum Pipeline Company / Sumed Company, a joint venture between seven companies in five countries, namely EGPC in Egypt, Saudi Aramco in Saudi Arabia, IPIC in the United Arab Emirates, QGPC in Qatar and three other firms in Kuwait. The largest share is owned by the Egyptian firm, namely 50 per cent interest (Wikipedia, 2012).

The Sumed pipeline plays a multifaceted role within Egypt and its international trade operations, commonly referred to as the decreased reliance on the highly used Suez Canal. Nevertheless, aside from this, the Sumed pipeline also performs other roles, as follows:

Cargo tailoring

Stock transfer

Cargo topping

Time and cost savings

Crude oil swap

Undertaking, and Integrated storage solution.

At the level of cargo tailoring, this role is best revealed for the cargo carriers entering the Ain Sukhna terminal. These carriers can tailor the size of their shipment based on their individual capacity, the demands of their customers, but also the specifics of the ports they will be entering (in a context in which some ports implement limitations on cargo). Then, another benefit of the Sumed pipeline is that the company stores the oil and even transfers the required quantities from one ship to the other, based on the specifics of each carrier; the company…

Sources used in this document:
References:

Strumph, D., Whittaker, M. (2011). Egypt unrest strokes oil, gold. The Wall Street Journal. http://online.wsj.com/article/SB10001424052748704680604576110530618545842.html accessed on October 30, 2012

Wahba, A.L., (2011). Egypt's military deploys along Sumed oil pipeline, official says. Bloomberg. http://www.bloomberg.com/news/2011-02-01/egypt-military-deploys-along-sumed-oil-pipe-adds-sentries-official-says.html accessed on October 30, 2012

(2006). Website of Sumed Pipeline. http://www.sumed.org accessed on October 30, 2012

(2011). No delays on Egypt's Sumed pipeline, Suez Canal: local sources. Platts. http://www.platts.com/RSSFeedDetailedNews/RSSFeed/Shipping/8501741 accessed on October 30, 2012
(2012). Sumed pipeline. Wikipedia. http://en.wikipedia.org/wiki/Sumed_pipeline accessed on October 30, 2012
Cite this Document:
Copy Bibliography Citation

Related Documents

Petroleum Companies Through Agility Measurement the Purpose
Words: 4337 Length: 15 Document Type: Thesis

Petroleum Companies through Agility Measurement The purpose of this paper is to evaluate petroleum firms and focus on their agility factors, after that a conclusion can be achieved that specifies which one of the firms are more agile as compared to the rest. In this paper, a questionnaire will be built which will help in analyzing the petroleum companies. The measurement of agility here will be dependent on four main

Petroleum Subsidies Have Worked to
Words: 3017 Length: 10 Document Type: Research Paper

) Perhaps even more important to the current issues is the fact that the Ibrahim Index of African Governance, with ranks African governments on the ability of those governments to deliver needed goods to their people. This index ranks Ghana relatively high on human development and safety and security and human rights protections. Again, it is important to stress that such political assessments are also economic ones. The fact that Ghana ranks

Petroleum Exporting Countries Opec . Specifically It Will
Words: 2343 Length: 6 Document Type: Research Paper

Petroleum Exporting Countries (OPEC). Specifically it will discuss how the United States deals with OPEC and oil prices, and how the United States has failed to create a viable energy policy that will allow the country not to depend on OPEC's control of the oil market. OPEC is a group of countries that export oil around the world that have banded together to control the supply and price of

Petroleum Power Plant in Texas
Words: 666 Length: 2 Document Type: Essay

Petroleum Hydrocarbon Power Plant in Texas The petroleum industry is one of the most profitable industries across the globe since it involves domestic exploration, creation, and transportation of oil and gas. This process is usually carried out through a network of distribution facilities and systems that focus on exploration, production, and transportation of petroleum products. Given the potential success and profitability of this business, developing a petroleum hydrocarbon-based power plant

Alternative Sources of Energy Petroleum, Commonly Referred
Words: 1338 Length: 4 Document Type: Essay

Alternative Sources of Energy Petroleum, commonly referred to as oil, is the main source of energy for the entire planet, but as it is a finite resource, there exists only so much of it. As a result of its becoming scarce, oil has become a precious commodity that is the source of much competition among nations. In the 21st century the world is frantically searching for alternative sources of energy other

BP Caucasus Region British Petroleum Caucasus Region
Words: 1267 Length: 4 Document Type: Essay

BP Caucasus Region British Petroleum Caucasus Region BP or British Petroleum is a multinational Oil and Gas firm that carries out exploration missions, refinement and supply of fuels to the world. BP is the third largest company in the energy sector and fourth largest among all multinationals. These titles were awarded to the firm on the basis of the sales or revenue amounts of the multinational energy companies in 2011. Other than

Sign Up for Unlimited Study Help

Our semester plans gives you unlimited, unrestricted access to our entire library of resources —writing tools, guides, example essays, tutorials, class notes, and more.

Get Started Now