Local Russian authorities approve northern export pipeline

Local Russian authorities approve northern export pipeline

Moscow (Platts)--12Nov2004


The government of Russia's Khanty-Mansiysk autonomous region in West Siberia
has approved the construction of a northern pipeline through the region's
territory, local government said Friday. Russia's oil pipeline monopoly
Transneft proposed the construction of a 1,788-km pipeline from Surgut in West
Siberia to Indiga on the Barents Sea to export Russian crude to western
markets, including the US, through a deepwater port. 

"With support by Khanty-Mansiysk government, we have accomplished a part of legal procedure
that envisages the approval of a pipeline project by all three regions -
Khanty-Mansiysk, Yamal-Nenets regions and the Komi Republic - involved in the
project. We presented the project to crude producers as well and are now
waiting for crude companies to come to a conclusion," vice-president of
Transneft Sergei Grigoriev said, adding that they cannot predict when the
consultations will conclude. Transneft estimates the construction will cost
$5.6-bil to $6.2-bil depending on the route that is still under consideration.

The pipeline may go through Kharyaga in the Nenets autonomous region, making
the route 90-km longer and some $600-mil more expensive. Russia's government
expects to consider the development of the country's crude pipeline network in
December. The capacity of the Surgut-Usa-(Kharyaga)-Indiga pipeline is
estimated at 50-mil mt/yr (1-mil b/d).

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