More for Ust-Luga

Light plans

Ust-Luga port has come up to Primorsk in terms of liquid bulk cargo transshipment driven by the development of two technologically tied terminals, those of Ust-Luga Oil and Nevskaya Pipeline Company. By today, they are fully operational but still there are possibilities for further increase and restructuring of cargo flows.

Ust-Luga Oil terminal (earlier known as Rosneftbunker) has become fully operational this year having reached its maximum capacity of 30 mln t. In 2015, it is expected to handle 28 mln t, a 16-pct increase against the throughput of 2014. Exports of light oil products will total some 10.7 mln t including 8 mln t of stable gas condensate produced by NOVATEK and 17.5 mln t of heavy fuel oil.

In 2016, the terminal is expected to handle 28.2 mln t of products.

There is a plan to stop transshipment of petrol produced by Kirishi refinery via the terminal. Its petrol flows will be shifted to another terminal of Ust-Luga, operated by SIBUR. Ust-Luga Oil will thus handle only light oil products, stable gas condensate and naphta. Ust-Luga Oil management believes this specialization is to contribute to operational efficiency.

So, some 93% of the terminal is loaded today. Meanwhile its Director General Konstantin Khamlai says the terminal still has the potential for throughput increase. “The terminal was designed so that it could remain flexible and capable of further development even when it reaches its full capacity. As we handle up to 30 mln t today we see a possibility of adding 4-6 mln t of diesel fuel. For that purpose, oil pipeline should be built between Unecha station and Ust-Luga port,” says Konstantin Khamlai. As of today, those volumes are exported via the ports of the Baltic states. 

In the future, more cargo flows can be secured with construction of a new refinery. It is just an idea so far but the environment is favourable for its implementation. Oil is delivered to Ust-Luga by Baltic Pipeline System (BPS-2) to the terminal of Nevskaya Pipeline Company. In 2015, its throughput is expected to reach 27 mln t with a possibility of growth to 38 mln t per year. Actually, it is a reliable and close resource for a refinery.

There is also a 7-hectare plot of land for new projects. It is currently owned by a private entrepreneur who was going to use it for establishment of a bunker farm but later abandoned the project. The plot of land can probably be purchased by the investor. It should be noted that Ust-Luga Oil is not looking into any bunkering activities.

When Ust-Luga Oil reaches its maximum throughput of 30 mln t per year, dark oil products are supposed to make 19 mln t, light oil products - 11 mln t.

Bottom reinforcement is in progress at the terminal’s berths today. This work is to prevent possible underwater erosion. If depth exceeds the design level of 17.5 m this threatens with berth undercutting. Gabions have already been placed at berths No No 2,4,5. Operations at berth No No 1,3 are to be completed in quarter I, 2016. Bottom reinforcement works are being executed by Baltic Project company.

In November 2015, Gazprombank expanded its share in Nevskaya Pipeline Company (Ust-Luga) from 24% to 74% having acquired the stake of oil trader Gunvor. Previously, 50% of Nevskaya Pipeline Company’s authorized capital was held by Gunvor, 26% - by Transneft Ust-Luga (Transneft subsidiary), 24% - by Gazprombank. Ust-Luga Oil terminal is the largest facility in Russia to transship oil products from railway transport to sea-going tankers. The terminal’s design capacity is 30 mln t per year. The tank farm’s capacity is 960,000 cbm. The three berths stretch for 1 km. Four tank car unloading racks can handle 526 tank cars at a time. 

Vitaly Chernov