Europe’s energy security has a Black Sea opportunity
Last Friday, 25 September, a vessel carrying 90,000 tonnes of Libyan El Sharara crude oil arrived at the port of Kulevi on the Black Sea coast in Georgia. It was the second Libyan delivery for the Kulevi Oil Refinery in less than a month, following the first cargo in August.
Black Sea Petroleum (BSP), a privately owned company based in Georgia, owns and operates the Kulevi Oil Refinery. Operations began in October 2025, and today the refinery processes exclusively non-Russian crude oil. The Libyan deliveries form part of a long-term supply agreement.
BSP’s existing production already offers a basis for supplying European markets with straight-run products, while EURO 5 fuel production is planned by 2029.
Europe’s need for diverse fuel supplies
Europe continues to import fuels used in transport and industry. According to Eurostat, EU net imports in 2024 amounted to 15.7 million tonnes of oil equivalent for gasoil and diesel and 11 million for jet fuel. Both are included in the Kulevi Oil Refinery’s expansion plans.
For Kulevi, the opportunity is to supply EU markets alongside Georgia, Armenia and Azerbaijan, drawing on non-Russian crude and the Black Sea’s shipping connections.
The European Commission’s assessment of 8 September 2026 described how higher EU refinery production and alternative international supplies were helping meet demand for diesel and jet fuel. Stocks remained sufficient, but developments in the Middle East and seasonal demand could tighten markets in the weeks and months ahead.
Additional refining capacity connected to maritime trade could give Europe more sources of these fuels. For Kulevi, the opportunity is to supply EU markets alongside Georgia, Armenia and Azerbaijan, drawing on non-Russian crude and the Black Sea’s shipping connections. This would add another route through which international crude supplies can reach Europe as refined products.
An operating refinery connected to the sea
Four pipelines run for three kilometres between the Kulevi Oil Refinery and the nearby port and terminal. They carry crude oil, naphtha, gasoil and fuel oil. The port and terminal are separate facilities owned and operated by SOCAR.
Crude arriving by sea or rail can reach the refinery through the terminal. Refined products can move in the other direction for shipment. The two Libyan cargoes show this infrastructure in use, bringing North African crude to the Black Sea for processing.
Black Sea Petroleum has invested €200 million in the Kulevi Oil Refinery to date. A further €650 million is planned by 2029 to expand refining capacity and introduce new fuel production units.
Supply contracts, certificates of origin and shipping records document the deliveries. They identify the crude’s origin and provide a record of its movement from the supplier to the refinery in Georgia.
The pipeline connection allows the refinery to use the terminal for both incoming crude and outgoing products. Expansion can therefore build on an established route to international markets. Greater refining capacity would increase the volumes handled through that route, while new production units would broaden the types of fuel available.
Investment already under way
Black Sea Petroleum has invested €200 million in the Kulevi Oil Refinery to date. A further €650 million is planned by 2029 to expand refining capacity and introduce new fuel production units.
The company plans to raise annual refining capacity from 1.2–1.5 million tonnes to 4.5–5 million tonnes by 2028. Plans also include bringing Euro 5 fuel production units into operation by 2029. The planned product range includes petrol, diesel, jet fuel, liquefied petroleum gas, marine fuel and bitumen.
These products would serve road transport, aviation, shipping and construction. Diesel and jet fuel would also place the expanded refinery in markets where the EU is a net importer. The investment programme is intended to support those exports while also meeting demand in neighbouring countries.
Honeywell technology and licensed processes will support the planned expansion, alongside automation and modular processing units. Engineering and construction for the next stages have continued since the first phase opened in October 2025.
BSP has completed 40,000 cubic metres of new storage capacity, with another 40,000 cubic metres nearing completion. This storage will support larger volumes of crude and products as production grows. The additional processing units will enter service as construction and commissioning are completed.
Building lasting European relationships
Led by co-founder and chief executive David Potskhveria, Black Sea Petroleum is establishing a Belgian company and preparing to open an office in Brussels. The office will give EU institutions and European business partners a permanent point of contact for discussions about the refinery and its investment plans.
BSP’s European Advisory Council and strategic advisers bring experience in European and international affairs to its work with EU institutions, national authorities and businesses across Member States. They support direct relationships between the company’s team in Georgia and its European counterparts.
BSP welcomes interested partners to visit the Kulevi Oil Refinery, see production first-hand and meet the people responsible for its operations and development.
Last week’s second Libyan delivery provides a concrete starting point for those conversations. The refinery is operating, non-Russian supplies are arriving and investment is continuing. Its development could give Europe an additional source of fuels through an existing Black Sea route, with a company seeking lasting European partnerships.
Video about BSP and the Kulevi Oil Refinery
For further information
brussels@blackseapetroleum.eu
