Lukoil to build its own oil pipeline
Russia’s largest oil company Lukoil has announced intention to build an alternative oil pipeline from Kharyaga oil deposit to Varandey terminal located in the Nenets autonomous area.
The 160 kilometers long privately operated pipeline is expected to increase the volume of oil export not controlled by the Russian government by 4.5 million tons, newspaper Kommersant reports.
The 160 kilometers long pipeline will have a capacity of 8 million tons of oil a year.
Earlier Lukoil planned to use the state oil pipeline run by Transneft company, but the new way of oil transportation turned out to be much cheaper. A private pipeline will save Lukoil for approximately 135 million USD. Besides, in the state pipeline Lukoil’s oil was to blend with high-sulfur crude oil, which actually deteriorates its quality.
According to Kommersant, there is currently only one big private oil pipeline operating in Russia – the Caspian pipeline. It links Tengiz field in Kazakhstan and Novorossiysk. Lukoil is one of the stockholders in the project.
