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Petroleum industry

Record-Breaking Russian Crude Exports by Rail

Strategic Insights

— 1 min read

Russian crude exports by rail to Arctic ports have surged to record levels, thanks to new floating storage off Murmansk, which has boosted capacity. Last month, Lukoil loaded the first 100,000t cargo of Urals from the 360,000t ULCC Belokamenka floating storage tanker stationed in the Barents Sea off Murmansk. This development has led to a significant increase in direct rail deliveries to Murmansk and the White Sea port of Arkhangelsk.

Key Takeaways:

  • Russian crude exports by rail to Arctic ports rose to a record 150,000 b/d last month, up from 125,000 b/d on average last year.
  • Exports to Murmansk reached a record 31,000 b/d last month, while loadings at Arkhangelsk were 27,000 b/d, down from February's record 36,000 b/d.
  • The introduction of floating storage off Murmansk has increased capacity, with two smaller storage tankers moored off the port.
  • Lukoil loaded the first 100,000t cargo of Urals from the 360,000t ULCC Belokamenka floating storage tanker stationed in the Barents Sea off Murmansk.
  • Direct rail deliveries to Murmansk and Arkhangelsk began in December.
  • Russian firms have lobbied for the construction of a private-sector pipeline to Murmansk, which would allow for future VLCC exports to the US, but Transneft opposes the idea.
  • Transneft has focused on boosting the capacity of the Baltic Pipeline System (BPS) feeding Primorsk, which has led to a record 838,000 b/d in March and plans to increase to 1mn b/d as early as June.

Statistics:

  • 150,000 b/d: Russian crude exports by rail to Arctic ports in March
  • 31,000 b/d: Exports to Murmansk in March, a record high
  • 27,000 b/d: Loadings at Arkhangelsk in March
  • 125,000 b/d: Average Russian crude exports by rail to Arctic ports last year
  • 2001: Next to no Russian crude exports by rail to Arctic ports
  • 838,000 b/d: Exports through Primorsk in March
  • 1mn b/d: Projected exports through Primorsk by Transneft as early as June

Sources:

  • Lukoil
  • Russian firms lobbying for a private-sector pipeline to Murmansk
  • Transneft

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