Bloomberg News

Surgut Said to Offer Urals Crude From Ust-Luga in Tender

March 15, 2012

OAO Surgutneftegas (SGTPY), Russia’s fourth-largest oil producer, issued a tender to sell Urals from the Baltic Sea terminal at Ust-Luga for loading from March 21 to March 22, said three traders who participate in the market.

The tender for 100,000 metric tons will be awarded at 3 p.m. Moscow time tomorrow, according to the people, who declined to be identified because they aren’t authorized to speak on the matter. The company issued a similar tender last month before canceling it later.

The terminal will have at least two loadings in March to test facilities at the port, which was delayed from a November opening due to engineering issues, Igor Dyomin, a spokesman for Russia’s pipeline operator OAO Transneft in Moscow, said today by telephone.

Results from the test shipments will be provided to Russia’s industrial safety watchdog Rostekhnadzor, which needs to approve the terminal before regular loadings can begin, Dyomin said. Regular loadings from Ust-Luga may start in April or May, he said.

The Ust-Luga terminal is the receiving point of Transneft’s 100 billion-ruble ($3.3 billion) Baltic Pipeline System-2. The BPS-2 link will have a capacity of 30 million tons a year, or 600,000 barrels a day, and is expected to pump 10 million to 15 million tons of crude this year, Dyomin said 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.

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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