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Transneft, Rosneft to build ESPO branch supplying Komsomolsk refinery

Rosneft and Transneft agreed to jointly build a branch off the Eastern Siberia–Pacific Ocean (ESPO) crude oil pipeline linking it to Rosneft’s Komsomolsk-on-Amur refinery. The branch will have a capacity of 8 million tonnes/year.

The companies expect construction to take 4 years. Crude currently arrives at the refinery by rail. Transneft will finance the design and construction of the offshoot using long-term fees paid by Rosneft as part of a separate shipment agreement.

Rosneft is implementing a large-scale modernization program at the Komsomolsk refinery with the stated goal of increasing refinery yield, improving environmental and industrial safety performance, and producing only fuels which comply with Euro 5 environmental standards. Modernization will increase the refinery’s capacity to 8 million tpy of crude.

Transneft is building the second stage of the ESPO pipeline, which transports oil from fields in Eastern Siberia to consumers on the Pacific coast and for export to China. The company expects total capacity of ESPO-2 to reach 50 million tpy, with construction between Skovorodino and Kozmino complete in 2014.

Contact Christopher E. Smith at chriss@ogjonline.com.


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