Transneft to digress from its purpose

Within the framework of the Transneft’s development strategy through until 2020, which was published by the company at the beginning of 2011, the completion of existing oil pipelines is assumed, as well as shift in emphasis for construction of oil-products pipelines. This is explained by initiatives of the Government, aimed at the stimulation of investments into oil processing that, according to Transneft, must increase the volume of transported oil products by 81.7% by 2020 as compared with 2011.

For comparison, in the same period the transportation of crude oil should grow only by 4.7%. The increase of the length of oil and oil-products pipelines relatively the existing network will make up 2.64% and 12.02% respectively.

The approved investment program of Transneft for 2013 assumes the increase of capital expenditures by 49% to 161.4 billion rubles as compared with actual expenses in the amount of 108.3 billion rubles in 2012. It should be noted that forecasted figures of the company’s investment program for 2014-2015 suppose annual growth of investment costs within 1%.