LUKOIL and Transnefteproduct to agree on an implementation of the project “Yug” (“South”)

The oil company “LUKOIL” and “Transnefteproduct” will be able to sign a cooperation agreement on a construction of oil products pipeline “Yug” (“South”). ITAR-TASS reported, citing two sources in the sector.

According to one of the companions of the agency, LUKOIL is ready to guarantee oil products supply via the future pipeline to “Transneft” (parent company of “Transnefteproduct”). Another source confirms that an agreement between the companies can be signed in the near future. Port Novorossiysk, not Tuapse has been chosen as a final point of the project. Taking into consideration the fact that only LUKOIL guarantees oil products pumping, the starting point of oil products pipeline will be Volgograd, where the oil refinery of the company is located. Earlier, they planned the start of the oil pipeline from Syzran (Samara region), where the processing facilities of “Rosneft” are situated.