Mr. Yury Bogatenkov, General Manager of Transneft Baltic LLC, told about implementation of the Sever Project intended to boost diesel fuel export flows via the port of Primorsk, of the possibilities of greater oil pumping towards the port of Ust-Luga and improved energy efficiency of the Company’s operations in his interview to The Business Petersburg daily.
What investment projects are being implemented by Transneft Baltic LLC? What objectives should be addressed upon their completion?
— The investment project to develop the petroleum product trunk pipeline system, Sever, to increase export supplies of petroleum products towards the port of Primorsk, Leningrad Region, is the principal one for our enterprise. The project is divided into two large stages.
As part of Stage 1, we implemented Sever-15 in 2016, which enabled us to boost the supplies of petroleum products via the port of Primorsk tо 15 mtpa, and implementation of Sever-25 Stage will be finalized by Transneft PJSC in 2017. As a result, upon completion of the Sever Project, up to 25 million tons of petroleum products may be transported towards the port of Primorsk annually, for export by tankers.
How much does the company invest into development?
— The scope of Transneft Baltic LLC capital investments came to RUB 11.9 billion in 2016, including RUB 5.7 billion towards the investment project program.
Why is it necessary to create additional facilities for diesel fuel transportation to Primorsk?
— Russian companies have improved the oil refining efficiency and the produced fuel quality in recent years. So, the main objective of Sever investment project is to increase export supplies of petroleum products via the Baltic Sea ports. In particular, this increase should result from redirection of petroleum product transshipment from foreign ports to the Russian ones as part of fulfillment of the Russian President assignments.
Obviously, export is increased by building petroleum product pipelines towards ports, but are there plans to supply fuel to the domestic market now?
— To supply Euro 5 diesel fuel to domestic consumers, we plan to launch a modern truck terminal in the Nevskaya line operation dispatcher station (LODS) in the Leningrad Region in 4Q 2018 and to begin diesel fuel supply to road tankers. By developing the internal network to supply fuel by small-scale wholesale consignments, we expand the relations with the oil companies and promote more active exchange trade.
Which facilities have been revamped or built recently?
— Two new product pump stations, in Yaroslavl and in Bykovo settlement, as well as a booster oil pump station in the pipe-end pump station (PEPS) in Kirishi were built and commissioned as part of the Sever investment project.
The Yaroslavl pipe-end pump station (PEPS) as well as line operation dispatcher stations - Pravdino LODS (NPP), Bykovo LODS (NPP), Pes’ LODS (NPP), Kirishi PEPS and Nevskaya booster pump station are being revamped.
Work was performed to replace the technological equipment of the assemblies of strainers and pressure reducing valve, inline pump rotors were replaced, leakage and drainage collectors and low-reliability electric driver installed in the linear portion of petroleum product trunk pipelines and in process pipelines were replaced.
Replacement of cable products, installation of the equipment of the automated systems of the electricity technical metering and the micro-processor automatic system were finalized.
Treatment facilities of the stations are being revamped are being reworked. The Oil Quantity and Quality Metering System at Yaroslavl PEPS has been commissioned.
The total length of Sever project petroleum product pipelines will amount to 1,728 km.
How much will the petroleum product export via the Primorsk port increase after Sever Project completion? When do you plan to achieve the targets?
— The scheduled transportation volume via the petroleum product pipelines towards the port of Primorsk upon completion of the Sever Project work, i.e. starting from 1H 2018, will be 25 mtpa of diesel fuel.
Ust-Luga is the second port in the Leningrad Region, through which the oil is exported. What oil shipment volumes were achieved in 2016 and are planned for 2017? Are there any efforts planned to increase BPS-2 capacity?
— The actual shipment in the port of Ust-Luga in 2016 came to 22.6 mtpa. The shipment plan in 2017 is 30 mtpa, which corresponds to BPS-2 capacity. Let me note that, if anti-turbulence additive needs to be injected, it is possible to pump up to 36 mtpa in this direction.
Which capacities are currently available to Transneft Baltic LLC, which of them are under your control?
— The enterprise is operating 87 oil and petroleum product tanks, as well as 5466 km of trunk pipelines from Yaroslavl to the port of Primorsk, from the Bryansk Region to the port of Ust-Luga. Our pipelines pass across the Yaroslavl, Tver, Novgorod, Pskov, Bryansk, Smolensk, and Leningrad Regions.
Such branches as Ust-Luga Oil Depot and Novgorod ROPD (regional oil pipeline directorate) were added to Transneft Baltic LLC responsibility area effective on April 1, 2016. The enterprise now has five branches, including: Yaroslavl ROPD, Leningrad ROPC, and the production/ technical maintenance and equipment completion base (PTM & ECB).
Transneft Baltic LLC also operates 26 pump stations including: 18 oil transportation stations, eight petroleum product transportation stations. More than 5,000 employees are currently employed in the Company.
How does the energy efficiency improvement process develop in the petroleum product and oil transportation sector?
— We have summarized the implementation of the Energy Saving and Energy Efficiency Programs in Transneft Baltic LLC in 2016 and for 8 months of 2017. As a result of the efforts taken in the previous year, the enterprise managed to save the total of RUB 36 million of energy resources.
In 2017, as part of the process improvement in oil and petroleum product transportation, the actual electricity savings amounted to some 10,657,000 kWh.
The promising energy efficiency technologies implemented by Transneft Baltic LLC LLC include improvement of the technological oil pumping modes. Application of the modern software with a topical mathematical model when planning oil transportation enables to select the most appropriate trunk pipeline operating mode. Regular cleaning of the inner pipeline surface also enhances the operating efficiency of oil trunk pipelines.
2017 was announced the Environment Year in Russia. What environmental efforts timed to this year were held by the company in the region?
— As part of the environment year, we have the Company’s environmental management system audited by an expert audit company with a global status.
Demo lessons devoted to environment and natural resource conservation, environmental actions involving greenery plantation and landscaping of parts and social facilities, litter picks were held in schools.
The company focuses on efforts on artificial reproduction of water bio-resources in rivers and lakes located in the areas of passage of long-distance trunk pipelines as well as on detection and protection of Red Book plants in the protective areas of trunk pipelines.
Graduated from the Ufa Oil Institute majoring in Designing and Operation of Gas and Oil Pipelines, Gas Storages and Oil Depots.
In 1980, he was assigned to the West and North Western Siberian Department (at present, Transneft Siberia JSC).
In September 2000, he was appointed Chief Engineer, and in April 2008, he headed Transneft Siberia JSC (at that time – Sibnefteprovod JSC).
At present, holds the position of the General Manager at Transneft Baltic LLC.
Transneft – Baltics
is a subsidiary of Transneft.
It was established on September 13, 2000, for construction and subsequent operation of the existing trunk pipelines of the Baltic Pipeline System.
The Head Office is located in St. Petersburg.
It includes five branches: Novgorod, Yaroslavl, and Leningrad Regional Oil Pipeline Departments, Ust-Luga oil depot, the production/ technical maintenance and equipment completion base.