World Bunkering > News > Winter 2009 > News and views

Primorsk Oil Terminal increases output

Olga Bogacheva

Primorsk Oil Terminal may increase its output of fuel oil four-fold in the second half of 2009. According to published forecasts, the terminal delivered 1.6 million tonnes of fuel during the first half of 2009. Annual production is expected to reach 8.4 million tonnes. This means that the terminal may export about one million tonnes of fuel oil per month from June to December. Primorsk Oil Terminal was put into operation in autumn of 2008. It is owned by Transnefteproduct, a state oil-products pipelines operator, a subsidiary of the Transneft oil pipeline monopoly.

Primorsk is the final point of the Sever main pipeline. Mihail Mezhentsev, the company’s president, said in spring 2009 that the terminal had not yet reached its full capacity due to the shortage of fuel oil complying with the standard, and the limited flow efficiency of separate parts of the pipeline. Mezhentsev expected the pipeline to reach 80-90% of its projected capacity of 8.5-9 million tonnes by the end of the year.

Gazpromneft Marine Bunker leases Petersburg bunkering terminal

Gazpromneft Marine Bunker, a subsidiary of Gazprom, has leased a bunkering terminal in St. Petersburg port from Kirovsky Zavod for five years. The company will start bunkering operations from the terminal in spring of 2009. A Gazpromneft representative said that the company had no intention to buy the terminal. The first stage of the bunkering facility in St. Petersburg port is already in operation. It was built on the left bank of Ekateringofka river on territory belonging to Kirovsky Zavod. Its storage capacity is 12,000 cu m (six tanks, capacity 2,000 tonnes each), with a transhipment capacity of up to 200,000 tonnes of fuel per annum. The estimated project investment is $18 million.

Construction of the second stage, which will have a a capacity of 800,000 tonnes, and require an estimated investment of $20 million, is planned as part of the port development programme. The facilities were constructed by Transbunker-Kirovets, founded in 2004 as a joint venture on a fifty-fifty basis by Kirovsky Zavod and Transbunker. Kirovsky Zavod bought the 50% of the bunkering facility built by Transbunker-Kirovets at the end of 2008. At that time Alexey Voskoboinikov, assets manager of Kirovsky Zavod, announced that the facility would be leased out to one of the major fuel companies as a non-core business asset.

Terminal case settled

Kirovsky Zavod recently won a case against Kirovsky Terminal concerning berth No. 6 in St Petersburg. In 2005 Kirovsky Terminal leased berth No. 6 for a year and the land lot under it till 2033. Kirovsky Terminal planned to build an oil-loading terminal, capacity up to 50,000 tonnes, next to the berth. “The contract included commitment of the lessee to build an oil-loading terminal capable of providing bunkering services at the berth,” said Igor Guschev, partner at Duvernua Legal and legal adviser for Kirovsky Zavod. “But the terminal was not built, Kirovsky Terminal only repaired the berth.

Thus, Kirovsky Zavod terminated the leasing agreement.” Guschev also said that currently berth No. 6 is not leased to anybody. According to him, Kirovsky Zavod plans to reconstruct and operate the berth without partners in the framework of the major port development program. However, it is unlikely another terminal will appear next to the existing one. The case was heard in the court of cassation. Legal judgment was issued by the Arbitrary Court of the North-Western Federal Region of Russia.

Gazpromneft signs agreement with Murmansk government

Gazpromneft and the government of the Murmansk region have concluded a General Cooperation Agreement for 2009-2011. The document was signed by Alexander Dyukov, Chairman of the Board of Gazpromneft, and Dmitry Dmitrienko, governor of the Murmansk region. The cooperation will include stimulation of investment, research and innovation activities in the Murmansk region. Special attention will be focused on the development of the transport infrastructure for accessing oil deposits on the Western Arctic Shelf.

Gazpromneft will investigate possibilities for purchasing oil and gas equipment from local manufacturers and will make all reasonable efforts to supply oil products to local customers. Attention will be also focused on design and implementation of energy-efficient technologies and ecological conservation and safety. Alexander Dyukov, Chairman of the Board of Gazpromneft, said: “Murmansk is one of the most attractive regions for our company. We already supply high quality fuel for vessels and planes here. We are interested in the social and economic development of this region and hope for further expansion of cooperation.”

Gazpromneft Marine Bunker is estimated to have had some 20% of the bunker market in the Murmansk region in 2008. Total deliveries in 2008 were 857,000 tonnes, including 40,000 tonnes in Murmansk port. The company began operations in Archangelsk port in May 2009.

Construction of new Far East port will start in 2010

Rosneft plans to start construction of a new marine port near Primorsk in 2010. The port will serve a new refinery, with a total annual capacity 20 million tonnes, to be built on the Pacific coast. Construction of the refinery will take place in two stages, with capacity of the first stage at 10 million tonnes. Estimated investment is $5-7 billion.

Barges updated

Stalpel design bureau was responsible for designing and supervising upgrades to two bunker barges which have now returned to operations. Siziman, a bunkering vessel, arrived at its home port of Vanino in the Russian Far East after significant repair and modernisation work, including the fitting of a double-hull. Repair and modernisation were performed at Dalian Lushun Binhai Shipping Build & Repair Co. Ltd. (Luishan, China) in conformance with the regular classification survey of the Russian Maritime Registry of Shipping.

The vessel has now been updated to comply with RMRS Rules issued in 2008 and Rule 21 of MARPOL Annex I and II 73/78. Modernisation was ordered by owners ERBS Shipping Co Ltd. In addition to the double-hull, the cargo management, cargo heating, air and measuring pipes were updated, along with the ventilation and exhaust-gas system. A new bilge system was installed to control the new bottom balance tanks. Meanwhile, Moryak shipyard has carried out significant modernisation of the Vostretsovo bunkering vessel, which operates in Novorossiysk. The vessel has been fitted with a double-hull and bottom in compliance with Rule 21 of MARPOL Annex I.

Separate fuel oil reservoir at Lukoil-II

A separate reservoir has been assigned for marine fuel at the Lukoil-II harbour transhipping complex in Vysotsk (Leningrad region, the Finnish Gulf). The reservoir, which has a capacity of 20,000 cu m, is intended for IFO-380 storage. Lukoil exported 12.6 million tonnes of oil products through Vysotsk harbour transhipping complex in 2008. Bunkering services are provided by its subsidiary, Lukoil Bunker.

Sovkomflot to cut fuel usage by 10-12%

Sovkomflot expects to cut consumption of marine fuel by 10-12% in 2009 as a result of enhanced route management, said Sergey Popravko at a board meeting on 22 September 2009. “The shrinking of the freight market makes it a necessity to cut expenses. Sovkomflot is dedicated to solve this task without impairing the safety and quality of our services. We will reach our goal through logistics improvement and cost management. The implementation of a business planning and consolidation system based on SAP recommendations will start in the fourth quarter of 2009. This should improve fleet management and reduce maintenance costs. Enhanced route management alone will decrease the consumption of marine fuel by 10-12% in 2009,” he said.

Russian Association of Marine and River Bunker Suppliers joins ASC

The Russian Association of Marine and River Bunker Suppliers was accepted as an associate member of the Association of Shipping Companies (ASC) in September this year. This will allow both organisations to make joint efforts to solve common problems, and to share information and experience. The ASC was founded in February 2004 by Volga, Moscow, North-Western, Azov-Don, Volgotanker and Pal Mali shipping companies. Today, members include the owners of 80% of Russia’s tanker fleet, 58% of the cargo fleet and more than 70% of the tourist fleet. ASC is represented in the European River-Sea-Transport Union and the Permanent International Association on Navigation Congress.

New members for Russian Association of Marine and River Bunker Suppliers

Applications from three companies – Morskaya Ecologia (St. Petersburg), Bunkernaya Kompania (Arhangelsk) and Skadar (Murmansk) – were considered at the meeting of the Board of the Association in Petersburg on 21 September 2009. All three were unanimously accepted as members.