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Transneft, JSC, Put New Facilities into Operation under the ESPO-1 Extension Project

Date of publication: 15 December 2014

Transneft, JSC, has commissioned three oil pump stations (PS), which were built during the implementation of the project aimed at extension of the Eastern Siberia – Pacific Ocean Pipeline System, Phase I (ESPO-1). Due to the commissioning of the new facilities, the throughput capacity of the ESPO-1 oil pipeline will increase to 58 million tons of oil per year.
The remote launching of the new industrial facilities was performed by Nikolay Tokarev, President of Transneft, JSC, on December 15, 2014 in the Bratsk Regional Control Center of Transneft East, LLC (Bratsk). Other participants of the event were: Kirill Molodtsov, Deputy Minister of Energy of the Russian Federation, Sergey Yeroschenko, Governor of the Irkutsk Region, Ruslan Kim, Minister for Economic Development of the Irkutsk Region, Aleksey Sapsay, Pavel Revel-Muroz and Mikhail Margelov, Vice Presidents of Transneft, JSC.
The operation of new oil pump stations – PS-11, 15 and 19 – is significant not only for the oil pipeline industry, which is important for exploitation and development of new oil fields of Eastern Siberia, but also for the regions of ESPO location, where Transneft, JSC, is a major taxpayer, generator of new jobs and developer of social infrastructure.
In his speech during the Launching Ceremony, Nikolay Tokarev, President of Transneft, JSC, said: «We are proud that the results of our work make Russia stronger. Launching of new facilities built under the ESPO extension program is the result of the efforts of everyone, of all the employees and workers of Transneft, JSC. We have accomplished the most important objective today – diversification of export directions and independence from transiter countries».
Kirill Molodtsov, Deputy Minister of Energy of the Russian Federation, congratulated the employees of Transneft, JSC, on behalf of RF Minister of Energy Alexander Novak: «May this event be a memorable chapter in the history of your company and another stage in the process of implementation of the Company’s plans. I look forward to an equally successful implementation of the investment projects on extending of the Eastern Siberia – Pacific Ocean Pipeline System, which are strategically important for Russia».
In his turn, Sergey Yeroschenko, Governor of the Irkutsk Region, pointed out: «The significance of this event for Russia and especially for the Irkutsk Region can hardly be overestimated. With the start of the pipeline construction in our territory, we have considerably changed the economic climate and the status of our budget, having made another step forward in the development of the oil and gas industry».
The increase in the throughput capacity of ESPO PS to 58 million tons per year will result in increased exports of Russian oil to the prospective Asian-Pacific market and in accomplishing the Russian and Chinese agreements on oil deliveries to China, which are expected to increase to 20 million tons of oil per year starting from January 1, 2015.
For reference:
The Eastern Siberia-Pacific Ocean Pipeline System was built by Decree No. 1737-r issued by the RF Government on December 31, 2004. The project is intended for transportation of oil from the fields of Eastern Siberia and the Far East to Russian refineries and for export to the countries of the Asian-Pacific Region through Kozmino Port. In addition, oil is transported to China by the Skovorodino – Mohe oil pipeline.
The system is technologically connected with the existing trunk pipelines of Transneft, JSC, and is included in the single network, through which oil flows are efficiently distributed across the territory of Russia, moving westwards and eastwards. By 2020, Transneft, JSC, is planning to increase the capacity of ESPO PS-1 to 80 million tons per year, while the capacity of ESPO PS-2 is expected to reach 50 million tons per year. It will result not only in the increased oil export to the countries of the Asian-Pacific Region, but also will help to supply oil both to the existing and the new refineries in the region.