OREANDA-NEWS. August 11, 2008. Russia will more than double high quality diesel exports from the port of Primorsk from October after its pipeline monopoly hooks up two more refineries to its newly built pipeline, an executive said on Thursday.

Vladimir Karamanov, vice-president of refined products pipeline monopoly Transnefteproduct (TNP), part of oil pipeline monopoly Transneft TRNF_p.RTS, said he expected volumes to rise to 460,000 tonnes per month from October from 220,000 in July.

The launch of Russia's first high-quality diesel pipeline, known as Project North, has been delayed by almost a year due to construction and logistical problems. It loaded a trial cargo in mid May and started regular operations only last month after it solved problems with the customs service.

"The project North is now working full time. We loaded 220,000 tonnes of Euro 5 diesel from the Yaroslavl refinery in July," Karamanov told reporters.
He said he expected volumes to stay flat in August at 225,000 tonnes.

Yaroslavl belongs to Slavneft, a joint venture between gas monopoly Gazprom's oil arm Gazprom Neft and TNK-BP TNBPI.RTS, itself a joint venture between oil major BP and a group of Soviet-born billionaires.

Karamanov said oil major LUKOIL will connect its Norsi refinery to the new pipeline in September while TNK-BP's Ryazan will be connected from October.

Norsi will be supplying 80,000 tonnes from September, Ryazan some 140,000 tonnes from October and Yaroslavl ramping up exports to 240,000 tonnes.

Primorsk, which is already home to Russia's largest crude oil export outlet, is due to ship up to 8.7 million tonnes of low sulphur diesel a year, or 725,000 tonnes a month, when it reaches full capacity in the years to come. Primorsk to double diesel exports from October.