LUKoil to Build Petroleum Transhipping Terminals in Novorossiisk, Vysotsk

According to the statement Vagit Alekperov, President of LUKoil made on Friday, June 28, during a briefing while visiting the Leningrad Region, the oil company intends to build a terminal for transhipping petroleum products at the Novorossiisk seaport. 'At this time', he said, 'we are trying to find a good location for it'. The annual throughput of the terminal, which is supposed to work in tandem with the refinery the company owns in the city of Volgograd, is expected to amount to 3 million tonnes.

In the meantime, the construction by LUKoil of a similar terminal in the town of Vysotsk, the Leningrad Region, has already begun. Mr. Alekperov said the estimated cost of this construction was about USD 100 million, the expected annual throughput of the new terminal amounting to 10 million tonnes. LUKoil's president said the first phase of the construction would be completed in August 2003, initial annual throughput reaching 5 million tonnes of petroleum products. After that, the terminal will be used for transhipping fuel oil and diesel fuel. The second phase completed, gasoline and lubricating oils will be added to the list. Finally, with the completion of the third phase, the terminal will be able to handle ammonia and methanol.

The Vysotsk terminal will handle petroleum derivatives produced by LUKoil's refineries in Ukhta, Nizhny Novgorod, and Perm. The company expects the cost of transhipping through the Vysotsk terminal to be about USD 2 per 1 tonne while now about USD 8 per 1 tonne is paid while using the terminals in the Baltic republics. According to its President, LUKoil exports annually about 15 million tonnes of various petroleum products and intends to fully switch to operating only through Russia's ports.

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