Transneft is the world’s leading operator of around 70,000 kilometres of oil pipeline in a network linking oil fields and refineries across the European continent, as well as to markets in Central Asia and China. See Table 1. Indeed, Transneft shifts eight times the amount of crude oil compared with Embridge Energy, North America’s longest pipeline owner with 27,388 kilometres, However, Transnet’s petroleum products turnover of 40,926 million tonne-kilometres is less than a quarter of that of Colonial Pipeline, the main transporter of petroleum products across America’s north east, with 184,155 million tonne-kilometres.
Transneft transports more than 85 percent of Russia’s extracted oil, mostly for export and the remainder destined for the domestic market of 40 domestic refiners or petrochemical plants. It transports oil directly by pipeline to foreign customers in Eastern Europe and China and to the oil ports for access to world markets. Furthermore, Transneft operates several fuel products pipelines in Russia including one serving the Moscow region. Joseph Murphy, expert on Russian energy and Editor, Energo – CEE/FSU Power Magazine comments, “as a state-owned entity performing a vital role in the Russian oil industry, Moscow will ensure that Transneft remains profitable enough to do its job.”
See Table 1.
|Table 1. Key Facts about Transneft|
|Trunk pipelines||More than 68,000 km|
|Pumping stations||More than 500|
|Storage tanks||23 M cubic meters|
|Transports||More than 85 percent of Russia’s extracted oil|
|Revenues in 2016||grew by 4.0 percent and reached US $13.68 billion|
|EBITDA in 2016||Increased by 10.0 percent and amounted to a record US $ 6.59billion.|
Legally a joint stock company, Transneft’s main shareholders are the Russian state, the sovereign wealth funds of Russia and China and the UCP Investment Group, an independent asset management company with a primary focus on the Russian market.
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