Bloomberg News

Surgutneftegas Said to Offer First Urals Cargo From Ust-Luga

February 17, 2012

(Updates with comment from Transneft in third paragraph.)

Feb. 16 (Bloomberg) -- OAO Surgutneftegas, Russia’s fourth- largest oil producer, issued a tender to sell Urals crude from the new Baltic Sea terminal at Ust-Luga for loading from Feb. 27 to Feb. 28, said two traders who participate in the market.

The tender for 100,000 metric tons will be awarded tomorrow, according to the people, who declined to be identified because they aren’t authorized to speak on the matter.

This would be the first crude cargo to be shipped from the terminal, which is the receiving point of the 100 billion ruble ($3.3 billion) Baltic Pipeline System-2 built by OAO Transneft. Igor Dyomin, a spokesman for Transneft, declined to comment on the start date of the BPS-2 link when contacted by Bloomberg News today.

Opening of the Ust-Luga terminal was delayed to the first quarter of 2012 from November because of engineering issues at the port, Dyomin said in December. OAO Rosneft, Russia’s largest oil producer, was said on Nov. 11 to award a crude tender for loading from the port in late November, which didn’t take place, according to two traders with knowledge of the matter.

The BPS-2 pipeline has a capacity of 30 million tons a year, or 600,000 barrels a day, and is expected to pump 10 to 15 million tons of crude this year, Dyomin said on Feb. 13. As much as 5 million tons each will be diverted from the Baltic port of Primorsk, Poland’s Gdansk, and the Black Sea port of Novorossiysk, he said at the time.

--Editors: Raj Rajendran, Rob Verdonck

To contact the reporters on this story: Sherry Su in London at lsu23@bloomberg.net Jake Rudnitsky in Moscow at jrudnitsky@bloomberg.net

To contact the editor responsible for this story: Stephen Voss at sev@bloomberg.net


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