Transneft can redirect funds from ESPO branch to Kozmino expansion
Transneft President Nikolay Tokarev said that Transneft, JSC currently had no information on the readiness of the People’s Republic of China to accept 30 million tons of oil through the Skovorodino ‒ Mohe branch of the Eastern Siberia ‒ Pacific Ocean (ESPO) pipeline system starting from 2018.
At the same time, he noted that Transneft was already prepared to pump 20 million tons per year in the direction of Mohe since all the necessary technical measures had been implemented. He also mentioned, however, that the People’s Republic of China could not accept the specified amount of oil.
President of the Company said that in case of unpreparedness of the People’s Republic of China to accept 30 million tons of oil through the ESPO branch in 2018, Transneft could direct the resources that are necessary for the development in this area to other projects. As an example of the financial maneuver he cited the Kozmino Special Sea Oil Port, where work could be implemented in order to increase the capacity of the port.
«If our Chinese partners are ready to receive these volumes, it will be necessary to create the entire infrastructure until 2018. Negotiations on this issue are ongoing», concluded the Company President.
Nikolay Tokarev also said that corresponding negotiations on the supplies to the People’s Republic of China, which will be attended by representatives of Transneft and Rosneft, were planned for May 29, 2015.
Transneft – Port Kozmino LLC is a subsidiary of Transneft JSC. Oil-loading terminal of Kozmino is the end point of the Eastern Siberia – Pacific Ocean pipeline system (ESPO). The port was built for transshipment of oil delivered by pipeline and railway to sea-going oil tankers. In 2014, the terminal exported 24.9 mln t of crude. The majority of oil was exported to Japan – 8.9 mln t (36%), China – 5.9 mln t (24%) and S. Korea – 3.7 mln t (15%). Crude oil was also exported to Malaysia, Thailand, Philippines, Singapore, New Zealand, Taiwan, USA and Indonesia.
