Transneft presented legislative proposals in the field of Fuel and Energy Sector of Siberia and Far East

Date of publication: 26 September 2017 Print

The participants of the event on Legal Support of Energy Industry, Hydrocarbons Production and Refining in the East Siberia and Far East included representatives of federal and regional authorities, scientific and non-governmental companies, fuel and energy sector enterprises which play prominent role in the area economics.

In his description of the oil industry in the region, Kirill Molodtsov, Deputy Minister of Energy of the Russian Federation noted that as of the moment it was at the stage of active growth. For example, capacities of the Kozmino oil loading port almost reached the maximum – over 31 million tons, and outran the planned targets for more that 3 years.

Among other things, the agenda included the preparation of the Russian Federation Government Regulation on attachment of the Western region of the Republic of Sakha (Yakutia) electric energy system to the Unified Russian Energy System, and designation of this region as a nonprice area of the wholesale electric energy market of the Far East.

Transneft is interested in the facilitated adoption of such regulation as was emphasized during the meeting by Vladimir Svinarev, Transneft President Adviser ‘Adoption of the regulation will allow to reduce significantly the costs of the purchased electric energy in certain oil pump stations (NPS-11, NPS-12, NPS-13, NPS-14) of East Siberia – Pacific Ocean trunk pipeline.

In addition, Transneft prepared specific proposals on certain draft legislature. It concerns, for example, Article 18 of Federal Law No.89-FZ 24 dated June 1998 On Industrial and Consumer Waste (in terms of specification of waste handover procedure), Article 215.3 of Criminal Code of the Russian Federation in terms of enhancement of criminal liability for impairment of oil pipelines, gas pipelines, and other legislative acts.

For reference

Transneft is the largest piping company in the world and one of the largest infrastructure companies in the Russian Federation. In the Far East region of the country Company subsidiaries (Transneft East and Transneft Far East) deal with oil transportation along the trunk oil pipeline Eastern Siberia – Pacific Ocean. The oil from Western and Eastern Siberia fields is transferred along the Eastern Siberia – Pacific Ocean (ESPO) pipeline to enter companies of the Russian Far East, China and, through the Kozmino oil loading port, proceeds to the markets of Asia-Pacific.