Oil Transportation Alternatives. FBK at Transneft Council of Experts.
Alexander Ermolenko, FBK Grant Thornton Partner, Head of Corporate Practice participated in the meeting of the Council of Experts of Transneft on the piping of high-sulfur oil as a separate transportation stream and the risks and prospects associated with this decision.
Within the framework of the event the experts pointed out that the splitting of oil transport into a high-sulfur and low-sulfur streams can become either a stimulus for the development of the industry or a hindrance to it.
Alexander Ermolenko on his part emphasized that the transition to separate piping of hydrocarbons of different quality should not be the reason for reducing the competitiveness in the oil market. The decision should be made with taking into consideration the interests of all parties; and the state can play an important role in maintaining the competitive environment. According to FBK Partner, the Ministry of Energy as the Regulator may encourage the processing of high-sulfur oil on the one hand, and, on the other, set the stage for the export of low-sulfur oil.
“Separate piping of oil of different kinds is an interesting solution that can potentially give an impetus to the development of the energy sector in Russia. At the same time the oil companies will not be able to cope with this issue on their own without the involvement of the State Government bodies. They do not determine the tax and tariff policies, nor do they allocate subsidies on technological re-equipment, however it will be difficult to achieve a positive effect without it,” said Alexander Ermolenko.
The Expert Council of Transneft has been functioning since December 2012 as a public platform for the discussion of topical issues related to the operation and regulation of the fuel and energy complex of Russia. The meetings of the Council of Experts take place regularly with the participation of the representatives of the leading consulting firms, state administration bodies and the managers of energy companies.
Within the framework of the event the experts pointed out that the splitting of oil transport into a high-sulfur and low-sulfur streams can become either a stimulus for the development of the industry or a hindrance to it.
Alexander Ermolenko on his part emphasized that the transition to separate piping of hydrocarbons of different quality should not be the reason for reducing the competitiveness in the oil market. The decision should be made with taking into consideration the interests of all parties; and the state can play an important role in maintaining the competitive environment. According to FBK Partner, the Ministry of Energy as the Regulator may encourage the processing of high-sulfur oil on the one hand, and, on the other, set the stage for the export of low-sulfur oil.
“Separate piping of oil of different kinds is an interesting solution that can potentially give an impetus to the development of the energy sector in Russia. At the same time the oil companies will not be able to cope with this issue on their own without the involvement of the State Government bodies. They do not determine the tax and tariff policies, nor do they allocate subsidies on technological re-equipment, however it will be difficult to achieve a positive effect without it,” said Alexander Ermolenko.
The Expert Council of Transneft has been functioning since December 2012 as a public platform for the discussion of topical issues related to the operation and regulation of the fuel and energy complex of Russia. The meetings of the Council of Experts take place regularly with the participation of the representatives of the leading consulting firms, state administration bodies and the managers of energy companies.
