the RUSSIA oil & gas competitive intelligence report - Report Buyer

Russia Oil and Gas Competitive Intelligence Report 2010
Oil Terminals/Ports
The country's biggest Baltic Sea port is located in Primorsk, with additional ports in St. Petersburg and
Vysotsk. Additional export capacity is located at the Black Sea port of Novorossiysk, Russia’s second
largest oil export facility. The Pacific port of Kozmino was completed in December 2009, to become
Russia's third largest oil export facility.
Primorsk
Primorsk, near St Petersburg, was completed in 2001 and exports around 1.5mn b/d, according to the
EIA, although it claims export capacity of around 3mn b/d. The terminal exports refined products as well
as crude, with Transnefteproduct beginning shipments in 2008.
Novorossiysk
The port of Novorossiysk is Russia’s main Black Sea port for oil, exporting Russian crude and oil
delivered by pipeline from Kazakhstan and Azerbaijan. According to the EIA, around 1mn b/d of Russian
crude is exported via the Black Sea (mainly through Novorossiysk), then sent through the Bosphorus to
the Mediterranean. In June 2010, Transneft claimed that two plans had been developed to reduce or cease
oil exports via the Bosphorus in order to provide customers for the Samsun-Ceyhan oil pipeline.
Kozmino
Russia's newest crude oil export terminal, the port of Kozmino, began operations in December 2009. The
port sent its first cargo to Hong Kong, underlining its focus on catering for Asian demand. Kozmino
exports East Siberian crude that is transported from the Meget railway terminal in the Irkutsk region to
the Skovorodino oil terminal, which started operations in October 2009. The Kozmino terminal, which is
operated by national oil midstream monopoly Transneft, is intended to be the terminus of the Eastern
Siberia-Pacific Ocean (ESPO) pipeline, which is due to be completed in 2014-15. The Skovorodino oil
terminal is the endpoint of Phase 1 of the ESPO pipeline, but Kozmino will receive oil delivered by rail
from Skovorodino until the second phase has been completed. Each railway oil cargo will hold 4,600-
4,800 tonnes (33,700-35,200bbl), according to ESPO's website.
Oil Pipelines
The port of Kozmino is a vital part of Russia's Asia Pacific economic strategy. Located in the Sea of
Japan, it offers links to the main regional consumers: Japan, South Korea and China. The port will
provide an outlet to oil producers in East Siberia, including Rosneft, Surgutneftegaz and TNK-BP. Once
the ESPO pipeline is extended to Kozmino, the port will play a major role in Russia's energy export
sector.
East Siberia Pacific Ocean (ESPO)
Once completed, the 4,700km ESPO pipeline will overtake the Europe-bound Druzhba (Friendship),
making it the world’s longest oil pipeline. Transneft’s ESPO will be the first Russian pipeline
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