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. Last Updated: 07/27/2016

LUKoil Studies Baltic Port Expansion

ST. PETERSBURG -- LUKoil may further expand its Baltic Sea terminal of Vysotsk to 17 million tons per year as it hopes to sort out its current problems with railway links, a company source said Thursday.

The source said the port, which last year loaded 9.2 million tons of fuel oil, diesel and vacuum gas oil, would increase shipments of diesel and fuel oil to become the country's largest refined products export outlet.

"A new railway loading facility is being currently designed. If we get funds this year, we will start construction, which will take about 18 months," the source said.

He said LUKoil wanted to produce 2.5 million tons of fuel oil at its Ukhta refinery using heavy crude from the Yarega field in the northern Komi region and ship the product to Vysotsk for export.

Some 3.5 million tons of diesel will be also delivered to Vysotsk by a new diesel pipeline, which is being built by refined product pipeline monopoly Transnefteprodukt. Vysotsk currently has two berths, and the source said a third would be needed to handle bigger volumes. A preliminary project should be ready by the end of April.