4.1.Main Lines of Development

In accordance with the Strategy and the Transneft Long-Term Development Programme.

2019: Main Lines of Development

→ Developing the Oil and Petroleum Products Trunk Pipeline System.

The following investment projects were completed:
Expansion of the ESPO PS within the section from the Skovorodino PS to the SSOP Kozmino Ensuring transportation up to 50 MTPA via the section
Expansion of the ESPO PS within the section from the Tayshet IPS to the Skovorodino PS Ensuring transportation up to 80 MTPA via the section
The ESPO PS – Komsomolsk Refinery oil pipeline offshoot Ensuring oil transportation to the refinery by pipeline transport in the amount of up to 8 MTPA
Increasing the throughput capacity of the Usa – Ukhta and the Ukhta – Yaroslavl OTPs Ensuring the intake of extra amounts of crude from the Timan-Pechora region to the system of oil trunk pipelines
The following investment projects were continued:
Revamping oil trunk pipelines for transportation of oil to refineries in Krasnodar Territory Ensuring oil transportation to Krasnodar Territory refineries (the major facilities are ready, connection of the Ilsky Refinery is completed); connection of the Afipsky Refinery is planned for 2020.
Developing a corporate data communication network to build Transneft’s unified information system. Improving the operational reliability of technological communication networks of oil trunk pipelines, creating a high-speed communication network for Transneft subsidiaries (the project is to be completed in 2025).
→ Environmental Protection

The specific air pollutant emissions during oil and petroleum products transportation via trunk pipelines was reduced by 6.9%.

→ Industrial Safety

Lower specific accident rate at trunk pipelines was achieved: not more than 0.059 accidents per 1,000 km of the line.

→ Innovative Development

The volume of financing allocated to innovation projects, including R&D, from own funds as the percentage of Transneft’s revenue from oil transportation services (by RAS) came to 1.41%.

→ Import Substitution

As part of the Corporate Import Substitution Plan, the Company had mastered domestic manufacture of 25 types of equipment at the end of 2019.
Manufacture of linear electric drives for stop and control valves was fully set up in 2019.
The drag-reducing agents plant of Transneft Synthesis was commissioned in Yelabuga (the Republic of Tatarstan) in September 2019.

→ Anti-Terror Security of Facilities

No terrorist attacks were reported at trunk pipeline facilities in 2019. Commissioned last year were 32 facilities with technical security equipment installed.

→ Raising the Operational Efficiency

The Integrated Indicator of Operational Efficiency Improvement stood at 100%: it shows the reduction of operating costs and specific electricity consumption for oil transportation over trunk pipelines, as well as an increase in the productivity of labour.

→ Reduction of Capital Costs

Capital expenditure was cut by RUB 4.0 billion thanks to the measures taken.

→ Financial and Economic Performance Indicators

The revenue increased from RUB 980 billion in 2018 to RUB 1,064 billion.
Excluding crude oil sale and purchase transactions, based on contracts with Rosneft and China National United Oil Corporation, EBITDA grew from RUB 433 billion in 2018 to RUB 486 billion.
Specific operating expenses for petroleum products transportation in comparable prices went down to RUB 690.60 per tonne from RUB 751.26 per tonne in 2018.

The Main Development Goals for the Period till 2020 as stipulated in the Transneft Strategy


Developing the oil and petroleum products trunk pipeline system:
  • connecting the Afipsky Refinery as part of the revamping of oil trunk pipelines for oil transportation to refineries of Krasnodar Territory;
  • ensuring transportation of petroleum products from newly connected refineries;
  • keeping the sulfur contents in the crude oil pumped via the Transneft system within the limits set in the rational routing scheme.
Import Substitution:
  • decreasing the purchase of imported products.
Fire Safety:
  • reducing the accident rate at trunk pipelines to 0.12 of emergency situations per 1,000 km of operated pipelines (the updated plans call for accident rate reduction to 0.072 till 2020).
Environmental Protection:
  • excluding discharge of insufficiently treated wastewater.
Reduction of Operating Costs and Capital Expenditure:
  • reducing expenses on pipeline construction and operation; maintaining the optimal expenditure level.