Get the latest updates as we post them — right on your browser

. Last Updated: 07/27/2016

LUKoil Opens Terminal at Baltic Sea Port

IZHEVSKOYE, Western Russia — The country’s largest oil producer, LUKoil, opened a new crude oil and oil products export and import terminal Thursday in the Kaliningrad region, a Russian enclave on the Baltic Sea.

Oil produced by LUKoil subsidiary Kaliningradmorneft in the region is to be delivered to the new terminal by rail, and the first tanker loaded with 10,000 tons of crude left for the Polish port of Gdansk on Thursday.

"We began construction in October 1999 and we have completed the first 700,000 tons a year phase," said Yury Kadzhoyan, Kaliningradmorneft’s general director.

"In a few months we plan to increase capacity to 1.5 million tons a year, and within a year we’ll be able to lift it to 4 million to 5 million tons a year," he said.

Kadzhoyan said there was a lot of interest in exporting oil through the terminal and that there were even some orders for diesel and gas condensate.

"The terminal can also be used to import a whole range of oil products," Kadzhoyan said.

The terminal currently has an oil reservoir of 20,000 cubic meters, which will be increased to 80,000 cubic meters when the project is completed, with pipes that can simultaneously take oil from 15 rail car tankers.

Kadzhoyan said LUKoil planned to load all of Kaliningradmorneft’s annual output of 700,000 tons at the terminal.