The amended Long-Term Development Programme (LTDP) of Transneft has been approved by the Russian government. This decision was made following the August meeting chaired by Deputy Chairman of the Government of the Russian Federation Alexander Novak.
The programme envisions implementing activities in every Company’s priority business area till 2025 and aims at meeting consumer needs for the transportation of oil and petroleum products, based on the use of high-tech industry-related technologies. The LTDP provides innovative production activities development and upgrading the level of reliability, industrial and environmental safety and energy efficiency of the trunk pipeline system.
Given the completion of the Company's biggest investment projects in 2019, the key objective of the adjusted LTDP is modernisation and revamping of the existing infrastructure. The programme includes a new investment project Ensuring the reliability of the trunk pipeline system and preserving the quality of crude oil flows for export.
Project implementation implies an increase in the capacity of tank farms to make sure the oil quality indicators are in accordance with the scheme of normal (process) cargo flows, to ensure uninterrupted operation of oil pipelines during natural and man-caused emergencies, as well as to assure the stability of crude oil export due to diversification of freight flow directions. The project involves the construction of 21 tanks with a total capacity of 690,000 cubic metres in the Central, Southern, Northwestern, Volga, Urals, Siberian and Far Eastern Federal Districts, where the Company’s eight transport subsidiaries operate.
Overall, Transneft's LTDP anticipates the replacement of more than 4,500 km of the line part of oil and petroleum product pipelines, construction and revamping of 300 tanks with a total capacity of over 5.5 million cubic metres, the replacement of 450 mainline pumps and 400 electric motors of pump units at oil pumping stations, as part of the technical upgrading and revamping of the trunk pipeline system's facilities from 2021 to 2025.
Prior to approval by the Russian Government, the LTDP was approved by the Transneft Consumer Council for Operational Issues, Russian Ministry of Energy, Ministry of Economic Development, Ministry of Finance, Ministry for the Development of the Far East and the Arctic, Federal Agency for State Property Management, and was also endorsed by Board of Directors of Transneft.