4.5. Main Investment Projects

The Eastern Siberia – Pacific Ocean Pipeline System (ESPO PS)

The length
4,740 km

33 PS

1 oil port
The implementation timeframe
2006–2019

VSTO
Project Goal

Ensuring oil transportation from oilfields in Eastern Siberia to Russian refineries and for export to markets of Asia and the Pacific via the port of Kozmino, as well as to China.

Basis for Implementation

Directive No. 1737‑r of the Russian Government dated 31 December 2004 (in the version of Russian Government Directives No. 1246‑r dated 5 September 2006 and No. 231-r dated 27 February 2008; Resolution the Government of the Russian Federation No. 219 dated 10 March 2009; Directive of the Government of the Russian Federation No. 455-r dated 3 April 2009); the list of instructions from the Chairman of the Government of the Russian Federation following the meeting on Development Prospects for Oil and Petroleum Products Pipeline Transportation that took place on 18 February 2014.

Construction of ESPO-1

Construction of the Eastern Siberia – Pacific Ocean OTP at the section from the Tayshet initial pumping station (IPS) to the Skovorodino pumping station (PS) with the throughput capacity of up to 30 MTPA and the length of the line reaching 2,694 km, with construction of seven PS. Construction of a specialised sea oil port (SSOP) in Kozmino Bay.

Status

The phase was completed in 2009.

Development of ESPO-1

Stepwise development of the throughput capacity to 50 MTPA, with construction of five new PS (Phase I), and to 58 MTPA, with construction of three new PS (Phase II).

Status

Phase I was completed in 2012, Phase II was completed in 2014.

Completion of ESPO-1

Stepwise development of the throughput capacity to 73 MTPA and to 80 MTPA, with construction of three new PS at each phase.

Status

Phase I was completed in 2017, Phase II was completed in 2019.

Construction of ESPO-2

Construction of the Eastern Siberia – Pacific Ocean OTP at the section from the Skovorodino PS to the port of Kozmino with the throughput capacity of up to 30 MTPA and the length of the line reaching 2,046 km, with construction of eight PS.

Status

The phase was completed in 2012.

Completion of ESPO-2

Stepwise development of the throughput capacity to 45 MTPA, with construction of one new PS (Phase I), and to 50 MTPA, with construction of three new PS (Phase II).

Status

Phase I was completed in 2017, Phase II was completed in 2019.

Expansion of ESPO-1 to 80 MTPA
Expansion of ESPO-1 to 80 MTPA
legend
Expansion of ESPO-2 to 50 MTPA
Expansion of ESPO-2 to 50 MTPA
In November 2019, Transneft brought the pipeline system to its maximum design capacity:
  • the throughput capacity at the section from the Tayshet IPS to the Skovorodino PS was expanded to 80 MTPA;
  • the throughput capacity at the section from the Skovorodino PS to the Kozmino port was expanded to 50 MTPA.
Yamal
PROBLEMS OF MECHANICS

VECTOR IS A QUANTITY HAVING DIRECTION AS WELL AS MAGNITUDE

PROBLEM SITUATION: In 2019, Transneft has completed the largest investment project in modern Russia to expand the capacities of the Eastern Siberia — Pacific Ocean (ESPO) pipeline system.

Vector 1 — V1. The ESPO capacity in 2009 — 30 million tonnes
Vector 2 — V2. By 2012, the ESPO capacity increased by 20 million tonnes
Vector 3 — V3. By 2014, the ESPO capacity increased by another 8 million tonnes
Vector 4 — V4. By 2017, the ESPO capacity increased by another 15 million tonnes
Vector 5 — V5. By 2019, the ESPO capacity increased by another 7 million tonnes

V — capacity of the ESPO pipeline system in 2019 after the project completion.

Determine: How much the delivery capacity of the pipeline system increased in the eastern direction from 2009 to 2019?

Δ — change in the delivery capacity of the pipeline system

CHOOSE THE CORRECT ANSWER:


SOLUTION:

Since the vectors have one direction (to the east), to increase the oil transportation volume, they add up.

1. We find the capacity of the ESPO pipeline system in 2019:

V = V1 + V2 + V3 + V4 + V5 = 30 million tonnes + 20 million tonnes + 8 million tonnes + 15 million tonnes + 7 million tonnes = 80 million tonnes

2. We subtract V1 vector from the V vector in order to understand how much the pipeline capacity has increased from 2009 to 2019:

Δ = V — V1 = 80 million tonnes — 30 million tonnes = 50 million tonnes


ANSWER: Δ = 50 million tonnes. Due to implementation of Transneft’s investment projects, the delivery capacity of the pipeline system in the eastern direction increased by 50 million tonnes from 2009 to 2019.



The ESPO PS – Komsomolsk Refinery Oil Pipeline Offshoot

The length
294 km

3 PS

8 mln tonnes per year
Completed
2019

Komsomolskiy_otvod
Komsomolskiy_otvod
Project Goal

Ensuring transportation of oil to the Komsomolsk Refinery.

Basis for Implementation

The Cooperation Agreement and the Agreement on Setting a Long-Term Tariff between Transneft and Rosneft.

Description

Construction of a 294-km pipeline offshoot from the ESPO pipeline system to the Komsomolsk Refinery with the throughput capacity of up to 8 MTPA, as well as construction of three PS.

Status

The project was completed in 2019.

The technical capacity for oil supply to the Komsomolsk Refinery in the amount of up to 8 MTPA was provided. Oil supply to the refinery was launched in July 2019.

Habarovsk

Increasing the Throughput Capacity of the Usa – Ukhta and the Ukhta – Yaroslavl Oil Trunk Pipelines

Tank farms capacity
30,000 m3

2 PS
Completed
2019

Privodino-Ukhta
Privodino-Ukhta
Project Goal

Ensuring the intake of extra amount of crude from the Timan-Pechora region to the system of oil trunk pipelines.

Basis for Implementation

A contract for technological connection with LUKOIL-Komi, as well as agreements on setting long-term tariffs between Transneft and oil companies.

Description

Revamping of the existing oil pumping stations with tank farms and construction of crude heating points.

Status

The project was completed in 2019.

This provided the technical capacities the oil trunk pipeline system needed to allow extra intake of crude from the Timan-Pechora Oil and Gas Basin. Intake of Yarega oil from LUKOIL-Komi at the Ukhta-1 oil pumping station began in July 2019.

Uhta

In 2019, by decision of the Management Board of Transneft, implementation of the investment projects to expand oil trunk pipelines of Western Siberia and expand the throughput capacity of the Kuyumba – Tayshet oil trunk pipeline was suspended.

Regarding the project to expand Western Siberia’s oil trunk pipelines, by Decision of the Government of the Russian Federation No. P9 117 dated 09 January 2020, paragraph 3 of Instructions of the Government of the Russian Federation No. DM-P9-1440 dated 28 February 2014, which provides for revamping of the oil trunk pipelines that transport Western Siberia’s oil to Tayshet, is deemed to be no longer valid.

Regarding the project to expand the throughput capacity of the Kuyumba – Tayshet oil trunk pipeline, by Directive of the Government of the Russian Federation No. 443-r dated 27 February 2020, Directive of the Government of the Russian Federation No. 532-r dated 17 April 2012 is amended; the amendments stipulate that the Ministry of Energy of Russia and Transneft are to analyse the growth of crude production and delivery to the pipeline by users of services and to submit proposals to the Government on expanding the throughput capacity of the Kuyumba – Tayshet oil pipeline by February 2023. Based on the joint report, a decision will be made on further steps in the implementation of the project.