LUKOIL PLANS TO DEVELOP PIPELINE TRANSPORTATION INFRASTRUCTURE FOR DIESEL FUEL FROM PERM

Monday, December 9, 2013

The OAO LUKOIL Press Service would like to announce that the company is currently looking at different options for the development of the transportation infrastructure, including pipeline transport, to ensure increasing supplies of automobile fuel both to the domestic market and abroad.

Specifically, the company is studying the option to upgrade its own Perm-Andreyevka oil-product main pipeline, as well as the possibility to raise the capacity of the oil-product pipelines owned by OAO AK Transneft, the Andreyevka-Cherkassy section, or implement the Andreyevka-Almetyevsk oil-product pipeline construction project.

The urgency of these projects is caused by the energetic implementation of investment projects focused on the re-equipment and upgrade of the processing capacities as part of the four-way agreement signed in July of 2011 by the company, the Federal Antimonopoly Service, Rostekhnadzor (Russian Federal Service for Ecological, Technical and Atomic Supervision) and Rosstandart (Federal Agency on Technical Regulation and Metrology).

As previously reported, re-equipment of the distillate hydrotreatment unit was completed at the Perm refinery in November of 2013, which will lead to an increase in the Euro 5 ULSD (ultralow sulfur diesel) fuel output by 325,000 tons per year. Thus, the total output of that eco-friendly fuel by the refinery will exceed 4 million tons in 2014.