Transneft has summarised the results of oil and petroleum products transportation for 9 months of 2020.
The entry into force of the OPEC+ agreement on 1 May 2020, led to a significant decrease in Russia’s oil production and, as a result, in the volume of oil and petroleum products transportation via the Transneft system.
This trend became particularly evident in 3Q 2020 in connection with the agreement to cut crude production that has been making an impact throughout the entire quarter.
Note: The volumes of oil and petroleum products transportation contain information on the supply (delivery to shippers / consignees) of oil and petroleum products at the end points of Transneft’s routes. All figures are presented in rounding; therefore, the sum of the rounded figures may differ from the rounded sum of the actual figures.
For 9 months of 2020, oil transportation via the Transneft system amounted to 334.8 MMT, which is 7.5% less than the same period of the previous year. At the same time, in 3Q 2020, oil transportation decreased by 16.7% compared to the same period of 2019 and amounted to 105.6 MMT.
Oil supplies to Russian refineries for 9 months of 2020 decreased by 3.7% compared to January-September 2019, amounting to 176.5 MMT, and by 10.1% in 3Q 2020 compared to the same period of 2019, amounting to 58 MMT.
For 9 months of 2020, export supplies of crude oil totaled 158.2 MMT, a decrease of 11.5% compared to the same period of 2019, including deliveries to non-CIS countries, which amounted to 148.9 MMT and decreased by 9.8% compared to 9 months of 2019.
In 3Q 2020, export oil supplies in total and oil supplies to non-CIS countries amounted to 47.5 and 43.3 MMT, decreasing by 23.8% and 24.4% respectively, compared to the same period of the previous year.
Petroleum products transportation
The transportation of petroleum products for 9 months of 2020 increased by 1.8% compared to the same period of the previous year, amounting to 28.9 MMT, while 74.7% of the total transportation volume of petroleum products were exported, and 25.3% were supplied to the domestic market. In 3Q 2020, the total transportation volume of petroleum products decreased by 1.1% compared to 3Q 2019.
In January - September 2020, 25.8 MMT of diesel fuel, 1.3 MMT of motor gasoline and 1.2 MMT of kerosene were accepted into to the Transneft system for transportation via petroleum product pipelines.
The transportation volume of petroleum products at the request of oil companies for export in January - September 2020 amounted to 21.6 MMT, which is 5.9% higher than in the same period in 2019.
For 9 months of 2020, supplies to the domestic market totaled 7.3 MMT, a decrease of 8.8% compared to January - September 2019, including 3 MMT in 3Q 2020, which is 6.3% lower than in 3Q 2019.
Due to a significant reduction in the volume of oil transportation via the Transneft system since May 2020 - caused by the entry into force of the agreement on cutting crude oil production by Russian companies and the lack of compensation by regulators for lost transportation volumes - and, as a result, reduction in revenue from tariffs, Transneft took a set of measures to further reduce operating costs, and also developed a set of measures to optimise capex as part of budget stress scenarios.