On September 2, 2016, Vice President of Transneft Sergey Andronov took part in the Eastern Economic Forum 2016 in Vladivostok. On the sidelines of the Forum, he answered a number of questions asked by journalists.
On crude collected for the Zapolyarye – Purpe oil pipeline
In 2016, Transneft plans to accept about 450,000 tonnes of crude from oil companies into the new oil trunk pipeline Zapolyarye – Purpe, informed Mr Andronov. He specified that the matter regards, above all, the volumes which LUKOIL started feeding into the new oil pipeline, as part of integrated test runs. As the facilities of Messoyakhaneftegaz are getting ready, its crude oil will also be fed to the oil pipeline: first as part of the integrated reliability run and later for its transportation. Both companies will provide tentatively equal amounts of crude for the pipeline.
Talking about another new oil trunk pipeline Kuyumba – Taishet, Sergey Andronov noted that starting on 09 September 2016, Transneft would launch a crude oil line fill, with regular upstream operations to commence at the end of this year.
On the prospects of the Burgas – Alexandroupolis project
Transneft assumes that should the oil pipeline project Burgas – Alexandroupolis be completed, it could be complemented with a petroleum products pipeline, said Vice President.
Mr. Andronov emphasized that for now this is just an option suggested by Transneft. In his words, the company always studies possible ways to diversify its deliveries. «Should the oil project Burgas – Alexandroupolis be revived, a petroleum products pipeline could be an excellent supplement,» he said.
«It is possible to consider development prospects – building a petroleum products pipeline alongside the oil pipe – to collect part of the growing volumes of petroleum products in the Black Sea region and transport them to Europe. There are Tuapse and Novorossiysk volumes which could be transported by shuttle tankers to Burgas and then fed to the pipeline and pumped to Alexandroupolis,» explained Mr. Andronov.
Vice President underlined that the Burgas – Alexandroupolis project is a good one that benefits many countries and lowers the risk of transit through the straits.
On the operations of Transneft – Kozmino Port
The transshipment of crude in Kozmino Port this year may exceed 31 million tonnes. «We estimate the transshipment will be at the level of 31.5 million tonnes and may even reach 31.8 million tonnes under favourable weather conditions,» informed Mr. Andronov.
«Our tankers are ready to accept crude and I think we’ll cope with this situation in September,» he said, commenting on suspension of crude oil transshipment in Kozmino because of the typhoon.
Sergey Andronov also added that in November 2016 Transneft would finish dredging works in Kozmino. After these works are completed, both berths will be able to accept tankers with the capacity of up to 140,000 tonnes. The cost of dredging operations and the construction of two tanks with the total capacity of 100,000 m3 will be about 4.5 bn roubles, their completion scheduled for the end of 2017.
On oil export
Mr Andronov also informed that crude oil export over the Transneft system may grow by 4 % in 2016 y-o-y.
The final adjustments of oil transfer plans were made by oil companies in late August. Transneft expects 481 million tonnes of crude to be fed to its system, compared to 480.5 million tonnes in 2015.
Vice President added that this year oil export over the Transneft system is expected at the level of 216.5 million tonnes against 207.5 million tonnes last year. “We attribute this growth mainly to the reduction of crude refining,” he cleared up.
Mr Andronov also informed that in 2016, China would accept 16.5 million tonnes of crude oil transported over the Skovorodino – Mohe oil pipeline, in addition to 7 million tonnes in transit through Kazakhstan. “Some 3.8 million tonnes will be exported via Kozmino, including the compensation for the crude undersupplied in 2015 [Because the Chinese section of the oil pipeline was not prepared to receive the extra 5 million tonnes in 2015–2017, as part of the intergovernmental agreement. – Comment by the press service]”, he added.
Expansion of the offshoot from the ESPO – Skovorodino – Mohe pipeline will be completed towards the end of 2017, and starting on 1 January 2018, the oil pipeline will be ready to collect and transport 30 million tonnes of crude. «China is carrying out the works and has assured us that everything will be over when due,» noted Sergey Andronov.
The export of crude oil to Western Europe in 2016 is planned at the level of last year.
