2.2. Existing transport systems in Northwest Russia

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2.2. Existing transport systems in Northwest Russia

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2.2.1 Transportation of gas

Here’s a thought…
“No norms exist which determine the period of use of gas pipelines. We are hoping that the Vidyaevo-Volokhov gas pipeline will give 50 or 100 years of service, or even more!”, declared A.S. Piotrovskiy, chief engineer for the project concerned with the integrated development of the Shtockman gas condensate field, during public hearings in Apatity, Murmansk oblast (19 September 2006).

Natural gas which is produced in Northwest Russia enters the main gas pipelines which join Russia’s Unified Gas Supply System (UGSS). The UGSS is 155,000 km long. It houses 268 compressor stations and the total capacity of the gas pumping units is 44.8 million kilowatts. Russia’s Unified Gas Supply System is the property of Gazprom.⁷

For your information:
Oil and gas pipelines are made of steel. They usually last for 20-40 years. The estimated lifetime and thickness of the pipelines depend upon the level of sulphur (H2S) in the gas; the more sour the gas, the shorter the estimated lifetime for the pipe. Only pipes made of stainless steel do not corrode. However, these are very expensive. Natural gas may contain up to 28% sulphur, H2S. This gas is highly toxic and is considered sour if the level exceeds 5,7 milligrams per cubic meter.

As of December 31, 2005, the average period of use of main pipelines is 22 years. ⁸
In 2005, 31 independent producers had access to the gas transport system. The tariff for independent producers when transporting gas through the main gas pipelines owned by Gazprom is determined by the following Federal executive authorities in the Russian Federation⁹: the Federal Tariff Service and the Department for State Regulation of Tariffs and Infrastructure Reform within the Ministry of Economic Development.

For your information:
According to the results of geological survey work, three regions with commercial oil and gas in northwest Russia reserves have been singled out for exploration¹⁰ • The Pechora Sea region - oil-bearing: the Varandey, Dolgin, Medyn and large-scale Prirazlom oil fields; the Severo-Gulyaev and Peschanoozer oil and gas condensate fields; and the Pomor gas condensate field; • The central Barents Sea region - gas-bearing: the Ludlov, Severo-Kil’din and Murmansk gas fields, as well as the Ledov and the Shtockman gas condensate fields; • The south Kara Sea region - gas-bearing: The Leningrad gas and Rusanov gas condensate fields; and four gas fields in the Bays of Obsk and Tazov.

Three areas in the region have been singled out as having commercial gas reserves, (see information on this page). According to Gazprom, development of the fields in the Bays of Obsk and Tazov will begin around 2010. Gas production is expected to exceed 80 billion cubic metres per annum by 2021¹¹. Gazprom’s proposed scenario for developing the facilities envisages construction of installations for integrated gas preparation, after which the gas will be transported on to the Yamburg gas compressor station for supply to the existing main gas pipeline system. ¹²

The shelf of the Kara oil and gas-bearing province has not been studied in detail. Consequently, there is no commercial production or transportation at the moment. However, Gazprom is planning to conduct a detailed field appraisal of the fields in the south Kara region and prepare them for development (fig. 3 Kara Sea)

Ultimate potential gas resources in the Barents Sea amount to 21.6 trillion cubic metres¹³. However, there is no commercial production or transportation at the present time. In terms of development, the most promising field in the Barents Sea is the Shtockman gas condensate field. A description of the transport and technology system for implementing this project is presented in detail in section 2.4 “Planned systems for transporting oil and gas in Northwest Russia”.

2.2.2 Transportation of oil

Here’s a thought…
“7.9 million tons of oil and oil products were transported in 2005 through the ports of the White and Barents Seas, 9.3 million tons – in 2006. In 2010 – 21.4 million tons are planned to be transported” – says Vladimir Baharev, Head of the “Harmonic Development” foundation, speech at the opening of the Barents Training and Response Centre in Murmansk in 2007.

At present, bulk oil loads are mainly transported in the form of crude oil, or residual fuel oil, which is conveyed by rail and pipeline to ports on the White and Barents Seas. From these ports the oil is transferred to tankers for subsequent transportation by sea to the western market either directly, or through oil transhipment complexes in the Kola Gulf (Fig. 4 “Ways of transporting oil and gas in the north of Russia”).

Transport by pipeline

Around 95% of the oil extracted in Russia is pumped through the main oil pipeline system of the “Transneft” company, a state company founded by the Government of the Russian Federation¹⁴. Transneft has the capacity to transport approximately 545,000 tons of oil per day; this is about 60% of the total export of oil and gas in the country. The rest is transported by rail or ship¹⁵.

The main pipelines from west Siberia and the Timan-Pechora province (“Ukhta - Yaroslavl - Kirishi” and “Surgut - Yaroslavl - Polotsk”) supply oil to Yaroslavl, which is one of the principal centres in the transport network supplying oil to northern Russia. From Yaroslavl, oil and petroleum products are transported to Arkhangelsk, Murmansk and the port of Vitino by railway.

Here’s a thought…
Within ten years, the export capacity of “Transneft” will increase from the current level of almost 20 million tonnes per annum to 49 million tonnes. This will account for approximately 16% of the total planned capacity of the main oil pipeline system¹⁶.

In addition, oil is supplied to Primorsk along the existing system of main pipelines between “Ukhta - Yaroslavl – Kirishi.” From Primorsk, oil is transported by tanker on the Baltic Sea to countries in Western Europe. Oil is supplied to countries in Eastern Europe using the “Surgut - Yaroslavl - Polotsk” main pipeline system. (Fig. 5 Chart showing the main oil pipelines operated by “Transneft”¹⁷ )

Here’s a thought…
In Siberia, 1-2% of total oil production leaks out and pollutes the environment due to out-dated technology, pipeline ruptures, etc., but in the North Sea only 0.001 % of oil is lost.¹⁸

Transport by railway

Oil destined to be exported from the region is transported to Arkhangelsk, Murmansk and the port of Vitino (Gulf of Kandalaksha)²⁰ and Kandalaksha by the northern railway which intersects the oil pipelines discussed above.

For your information:
Russia’s northern railway runs north, north-east along the territory of the Yamalo-Nenetsky Autonomous District, Komi Republic, Arkhangelsk, Vologod, Kostrom, Ivanov and Yaroslavl oblasts. The working length of the route is 8508 km.¹⁹

Oil which is extracted from fields in the Timan-Pechora oil and gas-bearing province is supplied via a branch of the “Usa - Ukhta” pipeline system to the oil transhipment railway terminal at Privodino station, in the Kotlassk region of Arkhangelsk oblast. Here, raw materials are transferred to tank wagons and dispatched to Rosneft’s sea terminal in Arkhangelsk. (Fig. 6: Absorption plant for recovering light hydrocarbon fraction, “Rosneft-Arkhangelsknefteprodukt” oil company in Privodino)

For your information:
Railway freight handling terminal at Privodino station²¹:
Region - Arkhangelsk oblast
In operation since- 2004
Cost - 2.3 billion roubles
Capacity - in excess of 4 million tonnes of oil per annum
Special features: the terminal is equipped with a modern environmental cleaning system: reservoirs with double side walls and a double bottom.

Fig. Chart showing shipments and freight transport through the sea port of Vitino (Gulf of Kandalaksha)

In accordance with the development plan for the Arkhangelsk terminal up to 2008, the “Rosneft-Arkhangelsknefteprodukt” company plans to increase freight turnover involving petroleum products up to 10,200,000 tonnes per annum. This increase will occur gradually: The volume of petroleum products transported is expected to reach 7 million tonnes per annum in 2006, with a planned increase to 8.5 million tonnes per annum envisaged for the second stage (by 2007). By 2008, freight transport will increase to 10,200,000 tonnes of petroleum products per annum.²²
Through Murmansk, the volumes of oil transported for export exceed 10 million tonnes per annum. A further increase in these volumes is proposed since the capacity to convey 20 million tonnes of oil per annum has already been established on the Kola Peninsula.²³

Petroleum products are supplied to the port of Vitino by railway tank wagons from the oil reprocessing plants in the towns of Yaroslavl (“Yaroslavnefteorgsintez”), Nizhny Novgorod (“Nizhnegorodskiy organicheskiy sintez”), Nizhnekamsk (“Nizhnekamskiy oil refining plant”), Perm (“Permnefteorgsintez”), Ufa (“Bashneftekhimzavody”), and Samara (the oil refining plant in Samara). (Fig. 7 The port of Vitino). Crude oil obtained from fields in Timan-Pechora province, which arrives by train from the town of Ukhta, is also transhipped in the sea port of Vitino.²⁴

Transport by sea

Oil is exported by tankers from Arkhangelsk and Murmansk, and the ports of Varandey (Pechora Sea) and Vitino (White Sea).

Here’s a thought…
More than a quarter of the oil and gas supplied to the EU comes from Russia. Russia is a major supplier of raw energy materials and therefore a main market for European services and production. “Russia is as much dependent on the EU as the EU is on Russia”, according to the Danish liberal, Anne Jensen. She suggests that the prospects of Russia joining the WTO will entice the country to sign the Energy Charter.²⁵

Oil extracted by the companies “Arcticneft” and “Arcticmorneftegazrazvedka” from fields on the Kolguev Island in the Barents Sea is either exported directly by tanker or through the coastal transhipment complex in the Kola Gulf. (Fig. 8 the Kolguev Island)

Oil from the northern fields in the Nenetsky Autonomous District reaches the oil storage tank of the “Naryanmarneftegaz” limited liability company via a system of local pipelines. This storage tank is linked to the bulk oil terminal in Varandey, from where oil and gas are dispatched for export by tanker through the coastal transhipment complex in the Kola Gulf (See Table “Offshore and coastal terminals”).

For your information:
The Varandey bulk oil terminal
Location - Pechora Sea
In operation since - 2000
Capacity - 1,500,000 tonnes
Operators - “Lukoil”, “Murmansk Shipping Company”
Service responsible for eradicating hazardous oil spills - “Murmansk basin emergency rescue service”

From the fields in the Bay of Obsk, oil is supplied by river tanker to the “Severomorsk” tanker holding lagoon in the Kara Sea (displacement - 39,000 tonnes) which belongs to the “Joint shipbuilding company” based in Murmansk (Fig. 9 The “Severomorsk” tanker). In addition oil is exported using shuttle tankers escorted by an ice breaker.²⁶

Table 1. Oil transhipment operations in Northwest Russia²⁷

Oil transhipment operations		Volumes (thousands of tonnes per annum)
Location and route	Characteristics	2005	2010
Murmansk	Transhipment of oil from railways	2000	6000
Varandey terminal	Loading of oil to tankers through sea pipelines and terminals	2500	12000
Pechora Sea - Kola Peninsula	Transporting oil by tanker	2500	14700
Arkhangelsk	loading of oil and diesel fuel on to tankers from the offshore terminal	3200	6000
The port of Vitino	Unloading of oil and gas condensate from the offshore terminal	3500	6000
White Sea - Kola Peninsula	Transporting oil by tanker	6700	12000
Kola Peninsula	Unloading of oil to export tankers	9200	26700
Bay of Obsk - “Severomorsk” tanker holding lagoon	Transporting oil by tanker	350	No data
Kolguev Island - Kola Gulf	Transporting oil by tanker	100	No data

Here’s a thought…
The commander of the headquarters of Norway’s national armed forces, Lieutenant-General Torsten Schiaker, has expressed Norway’s serious misgivings about the increased number of shipments of petroleum products by sea through ports located in northern Russia. The General stresses: “The growth in the number of tankers moving along the coast of Norway makes the probability of an environmental catastrophe similar to the accident involving the Prestige a very real danger.”²⁸

For your information:
In March 2006, Norway and Russia signed a bilateral agreement on mutual understanding and cooperation in safety at sea. The agreement proposes the establishment of a common system for monitoring and surveillance of oil transportation in the north, Barents VTMIS. (The Barents Vessel Traffic Management and Informational System). The Barents VTMIS is based on data exchange about automatic identification of ship (AIS-data), and will give Norway and Russia better information about vessels in the area. The traffic centrals in Vardø and Murmansk will be central in this cooperation.

The main transport routes pass along the coast of Norway in the provinces of Vestlandet, Trøndelag, Nordland, Tromsø and Finnmark.²⁹ (Fig. 10 Transportation along the Norwegian coast). The volumes of oil transported from the Russian sector of the Barents region along the Norwegian coast were insignificant for a long time. Starting in 2002, however, there was a dramatic increase in goods traffic: In 2002, 4 million tonnes of Russian oil was supplied along the Norwegian coast to the western market; in 2003, 8 million tonnes; in 2004, 12 million tonnes; and 15 million tonnes in 2005. In 2006 there was a slight decline; only 12 million tons were transported along the Norwegian coast. The estimates for 2007 are 12-14 million tons of oil. However, in accordance with preliminary forecasts, the volume of Russian oil exported by sea in this region can increase substantially in the near future.³⁰ Akvaplan-niva, a Norwegian research and consultancy centre believes that Russian oil transport along the Norwegian coast will reach 30-50 million tons by 2012.
The majority of bulk oil loads is transported to Rotterdam. The remainder goes to Germany, the Netherlands, Belgium, Great Britain, France and the USA.³¹

Here’s a thought…
“…by as early as 2010, Russia will have the capacity to export up to 150 million tonnes of oil by the northern route”.³²

For your information:
AIS – The Automatic Identification System provides safety along the Norwegian coast. The AIS network gives continual information about the position, course, and speed of all ships along the Norwegian coast. Information about nationality and destination is also available.

Offshore and coastal terminals (Fig. 11 “General map showing the distribution of oil transhipment terminals and transport routes in Northwest Russia”)

Table 2. Offshore and coastal terminals of the Northwest Russia

No.	Name	Location	Year of start up	Operator	Transportation	Capacity, thousands of tonnes	Service responsible for eradicating hazardous oil spills
Existing terminals
1	Varandey	Pechora Sea	2000	“Murmansk Shipping Company”, “Lukoil”	Timan-Pechora province (pipeline system) - Varandey - Kola Gulf - export	5 400	Murmansk basin emergency rescue service
2	Kolguev	Pechora Sea	1985	The “Аrcticneft” private company	The Peschanoozer oil and gas condensate field (pipeline system) -- Kolguev - (Kola Gulf) - export	200	Murmansk basin emergency rescue service
3	Bulk plant in the Murmansk sea fishing port	Murmansk, Kola Gulf	2004	“Murmansk sea fishing port” (a Federal State unitary enterprise)	By rail - Murmansk bulk plant - transhipment distribution complex 1 - export	2 000	The bulk plant’s special subdivision
4	Port oil transhipment complex at the 35^th [ship repairing] plant	Murmansk, Kola Gulf	2004	“Tangra Oil”	By rail - Port oil transhipment complex - transhipment distribution complex 1 - export	3 600	The “Gidrotekh-servis” limited liability company
5	Transhipment distribution complex 1	Kola Gulf	2002	“Murmansk Shipping Company”	The terminals in Varandey and Vitino, “Murmansk sea fishing port”, “35^th ship repairing plant” - transhipment distribution complex 1 - export	4 300	Murmansk basin emergency rescue service
6	Transhipment distribution complex 2	Kola Gulf	2003	The “White Sea service” limited liability company	Activities have been suspended for the time being
7	Transhipment distribution complex 3	Kola Gulf	2004	The “Belokamenka” limited liability company	Timan-Pechora province - Arkhangelsk, Bay of Obsk - transhipment distribution complex 3 - export	5 900	Murmansk basin emergency rescue service
8	Tanker holding lagoon in Mokhnatkina Pakhta	Kola Gulf	2005	The “Kommandit-servis” limited liability company	By rail - Mokhnatkina Pakhta - export	2 500
10	Onezhsk Bay	White Sea	2003	The “Volgotanker” public company	Through the White Sea-Baltic Canal Activities have been suspended for the time being		The “Morskaya Liga” private company
11	“Vitino”	White Sea	1993	The “Vitino sea port” private company	Timan-Pechora province (pipeline system) - Moscow, Yaroslavl (railway) - Vitino - (Kola Gulf) - export	8 000	The special subdivision of the “Vitino sea port” private company

* This table has been compiled using data from the report drawn up by the Svanhovd Environmental Centre entitled “The transportation of oil from the Russian sector of the Barents Region”, А. Bambuliak, B. Frantzen (2005/ 2007).

(Fig. 12 “Belokamenka”)

At the present time, reconstruction work is being carried out on the second stage of the Arkhangelsk oil terminal. The capacity of the terminal will increase from 4.2 million tonnes, to 10 million tonnes. The “Rosneft” oil company is building its tanker fleet comprising three tankers, each having a dead weight of 30 tonnes.

The “Lukoil” oil company is at present building a tationary, ice-resistant, offshore shipping terminal, with an output of 12 million tonnes of oil per annum, which will be situated in the Pechora Sea, 20 km from shore in the vicinity of the Varandey settlement. There are plans to build three tankers, with dead weights of 70 thousand tonnes each in order to export oil shipped from this terminal.³³

Footnotes:
[7] www.gazprom.ru (2006 year) Back
[8] www.gazprom.ru (2006 year) Back
[9] www.gazprom.ru (2006 year) Back
[10] “The opening up of hydrocarbon resources on the shelves of the Arctic and Far Eastern Seas: the past, present and future” - Neftyanoe Khozyaistvo, 06\2005 Back
[11] “Development of a gas transport system for removing gas from fields in the north”, B.V. Budziliak, R..M. Ter-Sarkisov, E.V. Leontev - Gazovaya promyshlennost, 06/2004 Back
[12] Results of the work conducted by Gazprom and preparation for development of gas resources in the waters of the Bays of Obsk and Tazov in the Kara Sea and the prospects for field development, B.A. Nikitin, V.S. Vovk, the “Gazprom” public company, A.Ya. Mandel’, V.A. Kholodilov, the “Gazflot” limited liability company. RAO/CIS OFFSHORE 2005 Back
[13] Oil and gas resources in Russia’s north-west region and the future prospects for its development, M.D. Belonin, O.M. Prishchepa (All-Union scientific research and geological exploration institute) Back
[14] “The transportation of oil from the Russian sector of the Barents Region”, А. Bambuliak, B. Frantzen - Svanhovd Environmental Centre Back
[15] US Energy Information Agency Back
[16] www.rusenergy.ru (2006 year) Back
[17] www.transneft.ru (2006 year) Back
[18] Russian anonymous researcher in an interview in the article Environmental Perceptions in northwest-Russia Internasjonal politick 65 (1) 2007: 7-22 Back
[19] “The transportation of oil from the Russian sector of the Barents Region”, А. Bambuliak, B. Frantzen - Svanhovd Environmental Centre Back
[20] www.vitino.ru (2006 year) Back
[21] www.oilcapital.ru (2006 year) Back
[22] www.oilru.com (2006 year) Back
[23] “Large volumes of oil - an easy path”, Yu. Banko - “Murmanskiy Vestnik”, 2 September 2006 Back
[24] www.vitino.ru (2006 year) Back
[25] www.europarl.europa.eu (2006 year) Back
[26] www.b-port.com (2006 year) Back
[27] The shelf does not need oil spills” - “Neftegazovaya vertikal” journal, January 2006 Back
[28] http://www.flb.ru/info/38564.html (2006 year) Back
[29] “The black gull - an emblem of ruin”, Elena Domcheva - Rossiskaya Gazeta, 31 March 2006 Back
[30] “Co-operation: experience plus technology”, I. Polyakova - the information-based and analytical journal “Transport Rossiy” - No. 3, 19 October 2006 - http://www.transportrussia.ru/2006-10-19/ecologia/razlivnefti.html?PHPSESSID=b7dc48ceb58a0112336476530b54e5dc (2006 year) Back
[31] “The transportation of oil from the Russian sector of the Barents Region”, А. Bambuliak, B. Frantzen - Svanhovd Environmental Centre Back
[32] “The transportation of oil from the Russian sector of the Barents Region”, А. Bambuliak, B. Frantzen - Svanhovd Environmental Centre Back
[33] “Large volumes of oil - an easy path”, Yu. Banko - “Murmanskiy Vestnik”, 2 September 2006 Back

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