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Preliminary results of the Transneft Development Programme implementation in 2017

Date of publication: 29 December 2017 Printable version

Transneft has reviewed the preliminary results of implementing its development and overhaul programmes for 2017.

This year the Company has completed a significant volume of construction-assembly and commissioning works, performed a comprehensive testing of and put into operation seven major investment projects:

- the Yug-1. Revamping of the Tikhoretsk – Novorossiysk trunk pipelines;

- the Yug-2. Construction of the Volgograd – Tikhoretsk petroleum product trunk pipeline;

- the Volgograd refinery – Tinguta initial pumping station petroleum product trunk pipeline;

- increasing the throughput capacity of the Yaroslavl – Moscow oil trunk pipeline;

- pressure protection system for the ESPO-1 oil trunk pipeline;

- increasing the capacity of the Skovorodino – Mohe oil pipeline to 30 million tonnes of crude oil a year;

- revamping of the Kuybyshev – Tikhoretsk and the Zhirnovsk – Volgograd oil pipelines for crude oil to be delivered to the Volgograd refinery in the amount of up to 14.5 million tonnes a year.

Furthermore, as regards the investment projects still under way, in 2017 Transneft has completed the following works:

- as part of increasing the throughput capacity of the ESPO pipeline system, four new PS (## 3, 6, 9, 29) have been built and commissioned along with external electric power supply facilities;

 - also completed is the main scope of works on the project “Developing the system of trunk pipelines to increase the supply of petroleum products to the port of Primorsk to 25 million tonnes a year (the Sever Project), including the building of pipeline sections with the total length of 84 km, construction of three new PS and revamping of eight (out of nine) operating pumping stations.

In 2017, the Company commissioned 962 newly built, technically upgraded and revamped facilities, including 1,591 km of trunk pipelines (585 km of newly built lines plus 1,006 km of technically upgraded and revamped lines). Some 371 km of pipelines due to be commissioned in 2018 were hooked up and 1,159 km of oil trunk pipelines were converted to pumping of petroleum products.

Both new and revamped tanks, 85 in all, with the total capacity of 1,489 m3 were commissioned, as well as 10 new oil pumping stations, 41 systems for measuring oil quantity and quality (OQQMS) and 31 technical security equipment (TSE) facilities.

In 2017 Transneft received 304 opinions from the state construction oversight body about the compliance of its built and revamped facilities with technical regulations and design documentation, as well as 337 commissioning permits.

In monetary terms the anticipated implementation of the Transneft development programme will imply:

- the level of financing – RUB 328.1 billion (100% of the originally approved plan);

- capex utilization – RUB 282.5 billion (100% of the originally approved plan).

The expected Key Performance Indicator (KPI) for investment efficiency in 2017 is 100%.

As part of preparations for reaching the targets of the Transneft Development, Technical Upgrading and Revamping Programme for 2018, Transneft completed in 2017 the state expert appraisal of design documents on 239 facilities, issued detailed documentation for construction on 951 facilities, completed acquisition formalities for land parcels with the total area of 12,685 hectares, and carried out the welding of more than 660 km of pipelines to be commissioned in 2018.

Transneft Press Service
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