Transportation of refined products in Russia

The processus of transportation of refined products in Russia follows two trends

The Russian government wants the oil industry to produce more refined products to replace crude exports. The goal can be reached by building new export pipelines from old refineries to the state border—or erecting new refineries close to export terminals.

The government is determined to encourage domestic refining by offering tax incentives for fuel exporters – even at the cost of witnessing shortages and high gasoline prices inside Russia.

When new rates of the export tax on refined petroleum products became effective on June 26, prices at filling stations jumped by a couple of cents per liter within a few days and keep growing. Oil companies prefer exporting gasoline and other sorts of fuel and petrochemical feedstock rather than crude, particularly in view of the new rate of the export tax on crude oil: it is to grow 8.3% from August 1 (to $216.40 per metric ton replacing the current rate of $199.80.)

Today, the exodus of refined products abroad is limited by transportation infrastructure bottlenecks, but the solutions are already on the way.

Pipelines of TransNefteProdukt traverse the Russian territory from the Kemerovo Region in Siberia to the Ukrainian-Hungarian border and Latvia’s Ventspils port in the west. The system consists on 15,200 km of trunk lines and 3,900 km of branches; 95 pumping stations, and 4.6 million cubic meters of tank farms. Rail loading is performed at 11 ramps, and loading into auto tankers, at 55 ramps.

The system can be accessed by 14 Russian refineries (four in Bashkortostan, three in Samara, and one each in Omsk, Perm, Nizhnekamsk, Ryazan, Moscow, and Kirishi), plus two Belarus refineries in Mozyr and Novopolotsk. The refineries ship 55.3% of their products via TransNefteProdukt. About 45% of products exported from Russia and Belarus pass the TransNefteProdukt system, going mainly to Hungary and Ventspils.

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