ESPO phase 2 on track to complete in 2012

Feb. 8, 2007
Russia may be able to complete construction of the second phase of the Eastern Siberia-Pacific Ocean (ESPO) pipeline to coincide with plans of the Asia-Pacific Economic Cooperation organization for a summit to be held in Vladivostok in 2012.

Eric Watkins
Senior Correspondent

LOS ANGELES, Feb. 8 -- Russia may be able to complete construction of the second phase of the Eastern Siberia-Pacific Ocean (ESPO) pipeline to coincide with plans of the Asia-Pacific Economic Cooperation organization for a summit to be held in Vladivostok in 2012.

Russian oil pipeline operator OAO Transneft is building the 4,000-km ESPO line with the aim of exporting Russian crude to countries in the Asia-Pacific region.

"We may be able to meet the APEC forum with the ESPO fully completed," said Russia's Industry and Energy Minister Victor Khristenko, who praised the speed at which the project is being implemented.

"The first phase of the ESPO [project] will be completed before the end of 2008," said Khristenko, saying the pipeline will reach Skovorodino by then and that there will be an export terminal on the Pacific coast at Kazmino.

If necessary, he said, a rail line could be constructed to transport the crude to Kazmino from Skovorodino while the second phase of pipeline construction takes place.

In the first phase, the pipeline system will have capacity to carry 30 million tonnes/year of oil from Taishet to Skovorodino, with the proposed rail system to link Skovorodino with the port terminal at Kozmino.

Khristenko said progress made by Rosneft and Surgutneftegas in constructing the line warrants optimism and that there is no doubt that the first section of the pipe will be filled.

"The pace of work that has been picked means that we will quite soon�before the first phase is over�get to the point where we can assess the potential of the second phase. In that sense, the figure 2012 does not appear to be fantastic," Khristenko said.

Meanwhile, Russia's environmental agency, Rostekhnadzor, has started a review of the ESPO segment linking Talakan oil field to the town of Aldan.

In a statement, Rostekhnadzor said the 2-month survey would be carried out by independent environmental analysts and its own specialists.

The agency also will conduct a 2-month environmental review for the feasibility study on construction of an oil terminal at the port of Kozmino.

Contact Eric Watkins at [email protected].