LUKOIL and Transneft sign agreement on diesel fuel transportation to Vysotsk (photo)
On May 30, 2014, LUKOIL President Vagil Alekperov and Transneft President Nikolai Tokarev signed an agreement on cooperation between the Companies, Transneft says in its press release.
In particular, to guarantee the supply of high quality fuel to the domestic market and to develop the pipeline system, the parties agree to increase the output of LUKOIL-Volgogradneftepererabotka refinery.
Under the project, LUKOIL will partly finance the expansion of the pipeline network and will ensure the supply of diesel fuel EURO-5 to the system of Transneft’s main product pipeline in the amount of at least 3 mln t per year over a 15 year long period.
Within the framework of the partial financing, Transneft in its turn will ensure the increase of LUKOIL oil to Volgograd refinery and will provide technical specifications for connecting to oil product pipeline Yug (South).
Besides, Lukoil undertakes to supply 10 mln t of oil products annually via Transneft's pipeline system, including 1.8 mln t of diesel fuel from Lukoil-Permnefteorgsintez and 5.4 mln t of diesel fuel, 2.1 mln t of gasoline, and 700,000 t of jet fuel from Lukoil-Nizhegorodnefteorgsintez.
As for the expansion of project Sever (North), the parties will develop the infrastructure at the main pumping station Primorsk to boost diesel fuel transportation to port Vysotsk (Leningrad region) from 1.5 mln t per year to 3 mln t starting from November 2015..
Transneft is Russian oil transporting state monopoly (78% of voting shares are controlled by the state) and the largest pipeline company in the world holding about 50,000 km of trunk pipelines.
LUKOIL is one of the world’s leading vertically integrated oil & gas companies. Main activities of the Company are exploration and production of oil & gas, production of petroleum products and petrochemicals, and marketing of these outputs.
