August 29, 2011 [Reuters] - Russia is to halt around 2.5 million tonnes of diesel exports a year from the Baltic Sea terminal of St Petersburg from Nov. 1, industry and port sources told Reuters on Monday, or more than 70 percent of the volume through the terminal.
The volumes will be halted after Russia’s Transneft said it would shut the 40-year-old pipeline linked to the terminal due to numerous “technical faults”.
Russia exports over 130 million tonnes of oil products a year, including 37-38 million tonnes of diesel. The St Petersburg terminal ships 3.5 million tonnes of diesel, including 2.5 million tonnes it gets via the pipeline.
The trunk is the only pipeline route to the Baltic Sea terminal for Kirishi refinery, owned by Surgutneftegaz . Other oil products are being shipped by rail to the port.
“The pipeline stoppage will result in downsizing exports by some 70 percent,” a source at the port told Reuters.
A spokeswoman for Transnefteproduct, a Transneft oil product subsidiary, said the plans for the link shutting are yet to be finalized.
“There is a possibility that the pipeline will not be shut immediately after Nov. 1,” she said.
The St Petersburg terminal has already lost some volumes after energy trader Gunvor launched its terminal in neighbouring Ust-Luga earlier this year.
