Transneft Launches South Pipeline Project - Huge Quantities of Oil Will Flow to Europe
Transneft has launched the Yug (South) pipeline from the Volgograd ORP to the Novorossiysk Harbor. The new pipeline is intended for exporting the C5 diesel fuel from the Black Sea coastline to European countries. At first, its capability will be 4 million tons per year. After the introduction of the new sections, it will grow twice that, maybe even more.
Rustam Tankaev, a CCI Committee member: "This is a very serious factor both for global and international markets. It's about 6-7% of the entire oil products exports. I'm talking about exports from Russia. It's a pretty big number. This is a strategic project. It can allow improving procurement in our regions that are located on the Black Sea coastline, primarily Crimea, of course".
As the companies note, the launch of this project can allow them to optimize their logistics and stop using expensive railroad transportation. Besides, the ORPs that aren't connected to the pipeline network will be able to turn in their products for export in the new receiving center in the Volgograd Region.
Igor Dyomin, the Head of Public Relations of JSC 'Transneft': "We give a chance to plants in South Russia to connect. This goes for the Yeysk, Slavyansk, Krasnodar and other ORPs. Right now, they export their fuel via railroads. However, they need to be modernized because they haven't started manufacturing quality product yet".