Transneft Reviews Preliminary Results of Implementing Development, Overhaul and Charity Programmes in 2018

Transneft has reviewed the preliminary results of implementing its development, overhaul, replacement programmes as well as the targeted charity programme and the corporate charity programme of school education development for 2018.

During the past year, Transneft completed the construction-assembly and pre-commissioning works, performed integrated testing and commissioned 4 large-scale projects:

- revamping of the trunk pipeline system to increase the volume of petroleum products transported to the Moscow area (construction of Shilovo-3 IPS, a railway loading rack, the Shilovo-3 – Ryazan petroleum products trunk pipeline, revamping of Nagornaya and Solnechnogorskaya loading stations);

- Developing a system of trunk pipelines to ramp up petroleum product supplies to the port of Primorsk to the level of 25 million tonnes per year (Sever-25; construction on the Vtorovo – Filino petroleum products trunk pipeline (53 km) and Vorotynets-1 BPS; revamping of Vtorovo BPS and Starolikeyevo IPS; conversion of the Vtorovo – Primorsk PPTP (the Vtorovo – Yaroslavl section) and the Gorky – Novki PPTP (the Starolikeyevo – Vtorovo section) to pumping of crude);

- the YUG project, the second phase. Construction of the Volgograd – Tikhoretsk PPTP (railway rack at Tinguta IPS);

- revamping of Kaleykino PS of the Kaleykino PS – Nizhnekamsky Refinery trunk pipeline, to increase crude delivery to TANECO Refinery to reach the figure of 14.0 million tonnes a year (as part of the cooperation agreement with Tatneft).

Completed in 2018 were the construction-assembly and pre-commissioning works on the investment projects “The ESPO PS – Komsomolsk Refinery Oil Pipeline Offshoot” (as part of the agreement with Rosneft) and “Expanding the Throughput Capacity of the Usa – Ukhta and Ukhta – Yaroslavl TPs” (as part of the agreement with LUKOIL-Komi).

Commissioned in 2018 as part of Transneft development programme were 993 newly built, upgraded and revamped facilities, including 1,153 km of trunk pipelines; 429 km of pipelines to be commissioned in 2019 were completed and connected to the operating system.

As for onsite facilities, 71 tanks, 16 LACT facilities as well as 34 technical security equipment (TSE) facilities were commissioned.

The expected execution of the development programme in money terms for 2018 will come to total financing standing at RUB 258.6 billion and actual capital investments use reaching RUB 213.3 billion.

Within the overhaul programme, works on 413 facilities were completed, with financing coming to RUB 10.5 billion. Within the replacement programme, works were completed on 231 facilities, the financing amounting to RUB 1.8 billion.

Within the programme to organise local manufacture of critical equipment for trunk pipeline transport of crude and petroleum products in the territory of the Russian Federation, the RUSSIAN ELECTRIC MOTORS plant was commissioned in the city of Chelyabinsk in 2018. Also completed is construction on a drag-reducing agents production facility in the Alabuga special economic zone (Republic of Tatarstan). Scheduled for the first quarter of 2019 is comprehensive testing of all the systems and equipment, to be followed by commissioning of the facility.

Projects related to increasing the capacity of the first phase of the Eastern Siberia – Pacific Ocean pipeline system (the ESPO-1 PS) to 80 million tonnes a year, and the ESPO-2 PS – to 50 million tonnes a year, continued in 2018; six new oil pumping stations are being constructed. The works are scheduled for completion in 2019.

Construction is underway at the Novovelichkovskaya – Krasnodar oil trunk pipeline and the new Novovelichkovskaya PS, as part of the project “Revamping of Oil Trunk Pipelines for Transportation of Crude to Refineries of Krasnodar Region” (based on contracts for technological connection with Ilsky Refinery and Afipsky Refinery), with works to be completed in 2019.

The Company continues implementing the integrated revamping project of the Sheskharis Transshipment Complex comprising 64 facilities, scheduled for delivery until 2025, with 41 facilities already commissioned, including 9 in 2018.

The recovery of Oil Terminal #1, owned by Transneft Primorsk Port and damaged by a tanker in November 2016, was completed.

As part of the targeted charity programme, 57 projects that received the total financing of RUB 4.3 billion were completed. Among them is an overhaul of the Children’s City Hospital in Bratsk, construction of a bridge over the Bogogo river in Krasnodar Region, construction of the Burning Bush church ensemble in Moscow and others.

As per the corporate charity programme of school education development, assistance was lent to 46 schools, to the tune of RUB 0.26 billion, in 24 regions of the Russian Federation.