Transneft Oil Pipeline Costs To Rise An Average 5% Sept 1

Moscow - The cost of transporting oil through the Transneft pipeline system will rise an average of 5% starting September 1.

A press release from the Federal Tariffs Service (FST) says the agency confirmed a tariff rate of $0.2522 per 100 tonne/kilometer of export oil. This is being done to offset falling Transneft revenues associated with the current U.S. dollar exchange rate relative to the forecast rate figured into the tariffs confirmed for 2004, the release says. The FST has also confirmed an agreement tariff for pumping oil through the Usa-Ukhta pipeline segment of 15.4122 rubles per tonne/km. This tariff becomes effective also on September 1, and reflects the need to expand the Usa-Ukhta trunk line's throughput capacity under an agreement between Transneft and oil companies that use the pipeline. The cost of pumping oil through this section has been increased by 4%. The Usa-Ukhta pipeline stretch is slated to have its throughput capacity increased to 1.9 million tonnes a year by July of 2005. The press release also says that, light of the advance fulfillment of oil transport volumes under a Transneft/Lukoil agreement, the agreed tariff for the sections between Povkhovskaya and the 39.836-km point and between Vatyegan and Aprelskaya. Starting August 18, 2004, this sections fall under a tariff rate confirmed by the Federal Energy Commission on November 28, 2003. (This FEC resolution concerns oil transportation tariffs for the Transneft trunk pipelines.) PIN//Interfax
News ID 29723

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