“Transneft” has refused idea of transportation of oil through the Northern sea route because of the high cost

MOSCOW, March 10. OJSC “AK “Transneft” considered the possibility of transporting about 40 million tons of oil via the Northern sea route, but abandoned the idea due to the high cost of building new infrastructure. This was announced at the meeting of the expert Board of the head of Department of strategic development of JSC “Transneft” Rasim Mingazetdinov.

“We considered offers the possibility to transport via the Northern sea route is about 40 million tonnes of crude oil in the port area Sabbata”, he said. But, said the representative of the company, in addition to upgrading current infrastructure, and transport costs it is necessary to construct new oil pipeline Zapolyarye-Ob 40 km long and terminal on the right Bank of the Ob river across from Sabbati.

“We considered the possibility of transport, including from the Novoport, but because of the high cost decided to abandon this project. Need to evaluate economic feasibility”, – he said.