2019 results: Ukrtransnafta increased domestic oil transportation by 13.4%

07.02.2020, 14:00:15

Ukrtransnafta, 100% owned by Naftogaz, increased oil transportation by 0.5% from 15.44 mmt to 15.51 mmt in 2019.

Domestic oil transportation to refineries was 2.38 mmt in 2019, which is 13.4% (281.30 mmt) more than in 2018. This is the largest volume of oil delivered to Ukrainian refineries over the past five years.

Transportation of domestically produced oil to the Drohobych Refinery grew to 404 kt, which is 7.3% more than in 2018, while deliveries to the Kremenchuk Refinery increased by 4.0% to 1.01 mmt.

Transportation of light oil from Black Sea ports to the Kremenchuk Refinery grew to 908 kt, which is 34.4% more than in 2018.

Uktransnafta delivered 622 kt of Azeri Light oil (Azerbaijan) to the Kremenchuk Refinery in 2019, which is 7.9% less than in 2018. This decrease in deliveries of Azeri oil was fully offset by transmission of imported oil of other grades via this route to the Kremenchuk Refinery. To satisfy the demand of the Kremenchuk Refinery, Ukrtransnafta transmitted two new grades of oil: 231 kt of Bakken (US) and 55 kt of El Sharara (Libya).

Oil transmission via main pipelines in 2019, mmt

2018
2019
+/- %
Transit
13.3
13.1
-1.6
Domestic transportation
2.1
2.4
13.4
Total
15.4
15.5
0.5
Source: Ukrtansnafta

Oil transit through Ukrainian pipelines to Europe fell down to 13.1 mmt in 2019, which is 1.6% (208.2 kt) less than in 2018.

Ukrtransnafta had to suspend Russian oil transit from 25 April to 11 May 2019 and from 17 to 21 May 2019 because of Druzhba pipeline contamination with organochlorine compounds.

By the end of 2019, Ukrtransnafta managed to bridge the gap caused by the Druzhba pipeline interruption in April-May.

On 18 January 2020, Ukrtransnafta completed the displacement of Russian oil with excessive content of organochlorine compounds from Ukraine’s section of the Druzhba pipeline.

Over the entire period of displacing contaminated Russian oil from the Ukrainian section of the Druzhba pipeline, Transneft booked Ukrtransnafta’s capacity and paid EUR 4.336 mn in compensation for booking services between May 2019 and January 2020.

MAJOR EVENTS IN THE OIL MARKET

In 2019, Ukrtransnafta and Transneft signed a supplementary agreement to extend the contract for Russian oil transit through Ukraine until 2030.

Besides that, Ukrtransnafta concluded an agreement with Ukrtatnafta to increase oil transportation from Black Sea ports to the Kremenchuk Refinery up to 1.2 mmt per year. Due to this agreement, tariffs for domestic oil transportation will grow in three stages over the three-year period.


Communications Department
NJSC Naftogaz of Ukraine