OREANDA-NEWS. Transstroymekhanizatsiya (TSM), a Mostotrest subsidiary, will build the Eastern Siberia - Pacific Ocean (ESPO) Pipeline offtake branch for Komsomolsk Refinery, under a contract from Rosneft with a total value of RUB46.9 billion (including VAT). The project is scheduled for completion in August 2016.

In accordance with the contract terms, TSM will build an offtake pipeline branch with a throughput capacity of 8 million tons per year for the supply of crude oil from the main oil pipeline "Eastern Siberia-Pacific Ocean" (ESPO) to the Komsomolsk refinery (Komsomolsk-on-Amur). Pipeline transport will significantly reduce the refinery's transport and raw material costs as compared with delivery by rail.

The project envisions construction in the south of the Khabarovsk region of a 330 km oil pipeline, a tank farm, related transport infrastructure, industrial sites and utility systems. A distinctive feature of the project is construction in a seismically active area with complex climatic conditions imposing more stringent requirements for the project in terms of industrial safety and environmental protection.

Mostotrest CEO Vladimir Vlasov comments on the project:

"TSM has accumulated considerable experience in managing complex projects, including construction of the ESPO Pipeline. The Company is the general contractor for and key executor of a number of infrastructure projects in the Far East of Russia, with a significant production capacity deployed in the region, including a modern fleet of specialized vehicles, plant and equipment. The new project involves both construction of a pipeline and development of road infrastructure, utility systems and industrial sites, which fall within TSM's core competences. Consequently, TSM intends to perform a substantial volume of work using in-house capacity."