Arctic link could cost $2.2billion
Thu, 7 April 2005
RUSSIA’S OIL pipeline monopoly Transneft said it may cost $2.2 billion to build a link from northern Russia to the Arctic Ocean to help companies such as Total increase exports. Russia’s oil output has surged about 50% since 1999, straining the capacity of pipelines, especially in regions such as Timan-Pechora, a northern oilfield being developed by LUKoil.
Total, Europe’s largest refiner, said insufficient export capacity was stalling investment at its northern Kharyaga field. Transneft thinks it is feasible to transport Timan-Pechora oil along the route from Kharyaga to the Pechora Sea port of Indiga, where an oil terminal with the capacity of 480,000brl/d could be built, the company said in a statement in mid-February.
Transneft has already looked at plans to build a pipeline from Surgut in western Siberia to Indiga that had a project cost of $6 billion, Transneft deputy chief executive Sergei Grigoryev said in a telephone interview. “The company will not decide on the Kharyaga-Indiga link until it has determined whether oil producers would support the new pipeline,” he continued.
Story courtesy Global Pipeline Monthly - http://www.gasandoil.com/gpm.
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