Lukoil starts first nongovernment products line linked to state system

Feb. 14, 2002
OAO Lukoil has started a 3 billion ruble ($97.2 million) oil products pipeline, Perm-Andreyevka, in Perm. Lukoil said it is the first nongovernment owned oil products pipeline connected to the central state pipeline system.

By the OGJ Online Staff

HOUSTON, Feb. 14 -- OAO Lukoil has started up a 3 billion ruble ($97.2 million) oil products pipeline, Perm-Andreyevka, in Perm.

The 335.3 km, 2.4 million tonnes/year pipeline connects the 279,142 b/d Lukoil refinery in Perm to the AK Transnefteproduct system.

Lukoil said it is the first nongovernment owned oil products pipeline connected to the central state pipeline system.

The system will provide transportation to southern parts of Perm region, Udmurtia, Bashkiria, surrounding regions, and further on to the west to export markets, said Lukoil.

It will also save up to $1.9 million/year in railroad tariffs and keep Lukoil from needing 44,000 tank trucks/year.

"The launch of a new oil products pipeline is a next step in a company's marketing network development aimed to supply quality products to the Russian consumers," said Lukoil Pres. Vagit Alekperov.