Belarus works on long-term oil supply contracts with Azerbaijan and Saudi Arabia – Belneftekhim
<p> MINSK, Jun 8 - PrimePress. Belarusian oil traders are working on long-term contracts for the supply of oil from sources alternative to Russia, particularly from Azerbaijan and Saudi Arabia, says Ruslan Labut head of the Foreign Trade Department of the state petrochemical concern Belneftekhim. </p> <p> </p> <p> “Energy security dictates strict rules, so Belarusian oil traders are working long-term contracts. It is clear today that alternative supplies are needed on a permanent basis. Furthermore, a phased annual increase in the volumes of oil is planned against the backdrop of the Russian tax maneuver,” Labut says. </p> <p> </p> <p> According to Labut, each refinery (Mozyr Oil Refinery OJSC, Gomel Oblast, and Naftan OJSC, Novopolotsk, Vitebsk Oblast) have their own strategies. Their laboratories analyze oil grades with respect to qualitative characteristics and choose the most acceptable grades to obtain a mixture of optimal quality. </p> <p> </p> <p> The Odessa-Brody-Mozyr route is being considered in the South. Only the delivery by rail through the Klaipedos Nafta terminal is possible in the North for now. There are two oil pipelines to Naftan there: Ventspils-Polotsk and Mažeikiai-Polotsk, which have not been used for almost 15 years. Belarus plans to conduct negotiations with foreign partners to discuss all technicalities. </p> <p> </p> <p> The Polish Gdansk-Adamowo Zastava-Mozyr route could be used to supply oil through the pipeline from the port of Gdansk to Naftan. Poland is conceptually ready for this transit, says Labut. Poland is laying the second string of the pipeline in the section from Gdansk to Plock, which can also be used in the future. </p> <p> </p> <p> Belneftekhim chose the Belarusian Oil Company as the single oil procurement operator. </p> <p> </p> <p> As reported, Belarus and Russia have been failing to agree on long-term oil contracts since late 2019 due to price disagreements. In 2020, Belarus began to import oil in sea tankers from the Lithuanian port of Klaipeda and from the Ukrainian port of Odessa, which is then delivered though the Odessa-Brody and Brody-Mozyr pipelines to the Mozyr Oil Refinery. Oil is being delivered from Klaipeda to Naftan by rail, which significantly increases the cost of supplies. </p> <p> </p> <p> President of Belarus Alexander Lukashenko instructed in March 2020 to complete the infrastructure of the Druzhba oil pipeline to import oil from the Baltic ports. The United States can provide assistance in organizing oil supplies to Belarus from the Baltic ports. Washington can provide cheap loans for the construction of a pipeline from the Baltic Sea. Lukashenko also tasked the government to prepare infrastructure in one and a half or two years, which requires around $100-120 million. End </p>
2020-06-09
Primepress
MINSK, Jun 8 - PrimePress. Belarusian oil traders are working on long-term contracts for the supply of oil from sources alternative to Russia, particularly from Azerbaijan and Saudi Arabia, says Ruslan Labut head of the Foreign Trade Department of the state petrochemical concern Belneftekhim.
“Energy security dictates strict rules, so Belarusian oil traders are working long-term contracts. It is clear today that alternative supplies are needed on a permanent basis. Furthermore, a phased annual increase in the volumes of oil is planned against the backdrop of the Russian tax maneuver,” Labut says.
According to Labut, each refinery (Mozyr Oil Refinery OJSC, Gomel Oblast, and Naftan OJSC, Novopolotsk, Vitebsk Oblast) have their own strategies. Their laboratories analyze oil grades with respect to qualitative characteristics and choose the most acceptable grades to obtain a mixture of optimal quality.
The Odessa-Brody-Mozyr route is being considered in the South. Only the delivery by rail through the Klaipedos Nafta terminal is possible in the North for now. There are two oil pipelines to Naftan there: Ventspils-Polotsk and Mažeikiai-Polotsk, which have not been used for almost 15 years. Belarus plans to conduct negotiations with foreign partners to discuss all technicalities.
The Polish Gdansk-Adamowo Zastava-Mozyr route could be used to supply oil through the pipeline from the port of Gdansk to Naftan. Poland is conceptually ready for this transit, says Labut. Poland is laying the second string of the pipeline in the section from Gdansk to Plock, which can also be used in the future.
Belneftekhim chose the Belarusian Oil Company as the single oil procurement operator.
As reported, Belarus and Russia have been failing to agree on long-term oil contracts since late 2019 due to price disagreements. In 2020, Belarus began to import oil in sea tankers from the Lithuanian port of Klaipeda and from the Ukrainian port of Odessa, which is then delivered though the Odessa-Brody and Brody-Mozyr pipelines to the Mozyr Oil Refinery. Oil is being delivered from Klaipeda to Naftan by rail, which significantly increases the cost of supplies.
President of Belarus Alexander Lukashenko instructed in March 2020 to complete the infrastructure of the Druzhba oil pipeline to import oil from the Baltic ports. The United States can provide assistance in organizing oil supplies to Belarus from the Baltic ports. Washington can provide cheap loans for the construction of a pipeline from the Baltic Sea. Lukashenko also tasked the government to prepare infrastructure in one and a half or two years, which requires around $100-120 million. End