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Transit of Kazakh oil via Russia disrupted due to cold weather

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Transit of Kazakh oil via Russia disrupted due to cold weather

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Transneft sees deliveries resuming within 3 days

Outage caused by adverse weather

Moscow — Transit of Kazakh oil via Russia has been disrupted due to power outages caused by cold weather, Russian pipeline operator Transneft said Jan. 11.

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"Due to severe frosts in the north of Kazakhstan, power to two regions has been cut off, including an oil pumping station that supplies oil to the Transneft network. From 05:00 Moscow time [02:00 GMT] pumping from Kazakhstan was halted until restoration of power lines," Transneft said.

The power outage has affected shipments via the Atyrau-Samara pipeline. A spokesman for Transneft said that repair work is likely to take no more than 3 days, and Transneft does not plan to redirect flows via an alternative loading point. Transneft also transits Kazakh crude from the Aktobe region in Kazakhstan to Salavat through the Russian region of Bashkortostan.

Transneft's transit of Kazakh oil averaged 329,998 b/d in 2020, up 1% on year, according to data released by the central dispatching unit of the Russian energy ministry Jan. 2.

Most of these volumes are sent to the Russian Baltic port of Ust-Luga, with some shipped via the Druzhba pipeline to Belarus and further into Europe.

Transneft also said that it expects to compensate for disruptions to oil loading into its network caused by cold weather in Siberia by the end of January.

"In general the disruptions were insignificant and may be compensated by the end of the month," Transneft said.

In early January, the company recorded 47 disruptions to delivery into its network due to abnormally cold weather.