Ukraine and Belarus Prolonging Contract on Oil Transit via Pivdenny Port

18 Дек

JS Ukrtransnafta and a daughter company of the Belarus oil company BNK UK Ltd have expanded to 2021 the contract on transit of the crude to be received by the sea oil terminal of Pivdenny Port (ex-Yuzhny) for its further transfer to Belorussian refineries by Odessa-Brody pipeline, as reported by Ukrtransnafta DG Mykola Havrylenko in his interview to Interfax-Ukraina.

“It’s already prolonged. In the early December. As a routine procedure”, said Mr Havrylenko

He noted that the tariff and contract conditions for the next year correspond to the contract in force.

“Conditions are the same. there had been a request by the Belarus party on granting a certain discount for the tariff, but considering our production peculiarities as concerns the pumping in the mode as per the contract, we have explained to them that a reduction of the tariff is possible only in case of the transferred volumes increased by their side. They have the differentials, and they do clearly understand which options of the tariff reductions are possible. Volumes to rise – tariffs to fall”, explained by the manager of Ukrtransnafta.

Mr Havrylenko has also specified that BNK had already nominated a tanker for the first ten days of January 2021.

Basing on the outcome of 2020 it is forecast that the traffic of Azerbaijani crude from Pivdenny oil terminal to Belarus via ukrain is going to amount to 880,000 t, including 80,000 t as export.

The crude deliveries to Belarus in the southern direction via Ukraine were renewed due to the absence of deliveries from large Russian companies in the first quarter of the year caused by discrepancies in the price. The first delivery of crude from Azerbaijan under the contract with SOCAR through the Sea Oil Terminal (SOT) Pivdenny (ex-Yuzhny) was provided in March 2020. As per the Belneftekhim data, SOCAR may deliver up to 1M t of crude to Belarus this year.

SOT Pivdennny operated by JS Ukrtransnafta provides reception, loading and transportation of oil by trunk pipelines. The complex is equipped by four standers manufactured by FMC (France). The maximum load-discharge capacity per stander amounts to 4,000 m3 per hour. The terminal’s tank farm comprises ten reservoirs totally capable of 200,000 m3.

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