Rosneft and Transeft sign tariff agreement for ESPO pipeline extension

Rosneft and Transneft have signed an agreement to design and build the East Siberia-Pacific Ocean (ESPO) trunk pipeline offshoot to the Komsomolsk refinery in the Russian Far East District.

Transneft will finance the offshoot design and construction by means of the long-term tariff to be paid by Rosneft. The long-term tariff will remain effective for three years.

The pipeline offshoot, which will have an annual capacity of about eight million tonnes of oil, is aimed at meeting the crude transportation needs of the Komsomolsk refinery.

Rosneft will also supply about 8 MTA into Transneft’s trunk pipeline system to be delivered to the refinery.

The railway service is currently being used to deliver the majority of the crude for the refinery.

The pipeline will provide steady and secure supplies of increasing crude volumes to the facility.

Both the companies will construct the pipeline offshoot as part of the Transneft long-term systemic policy to build a system of trunk pipelines as unveiled in the general scheme for the development of the oil industry in the Russian Federation.

It is also part of a large-scale Rosneft refinery modernisation programme intended at increasing the volumes of high-quality product output.

Komsomolsk refinery makes 22 types of refined products, including gasoline and diesel fuel as per the Euro-5 standards.

The facility’s throughput volume was 7.1 MTA in 2013 with 58.2% of light product.

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