Gazprom Neft Completes Arctic Oil Terminal to Deliver New Crude Blend to Europe Year-Round

Gazprom Neft's Novy Port oil field off the Yamal Penninsula. Photo from Gazprom Neft.
Gazprom Neft’s Novy Port oil field off the Yamal Penninsula. Photo from Gazprom Neft.

Russia’s fourth-largest oil producer has finished building its Arctic terminal at Cape Kamenny on the Yamal Penninsula, which will facilitate up to 8.5 million tons of oil shipments year-round. Previously movement of crude from the oil field was limited to the ice-free season.

Setting up the Arctic terminal is a key step towards the start of year-round oil export of the Novy Port oil blend to European consumers,” Gazprom Neft’s First Deputy CEO Vadim Yakovlev said.

The terminal will process oil from the Novoportovskoye (Novy Port) deposit, which has estimated oil reserves of 230 million tons and 270 billion cubic meters of gas, with peak production of 8.5 million tons per year expected after 2020.

The route of oil from Novy Port once it reaches the new oil Cape Kammeny terminal. Photo from Gazprom Neft.
The route of oil from Novy Port once it reaches the new oil Cape Kammeny terminal. Photo from Gazprom Neft.

By 2016 oil supplies from Novy Port will increase to 2 million tons, and to 4 million tons by 2017, according to Yakovlev.

The low sulfur blend of crude oil has been given its own crude blend classification – Novy Port, which Gazprom Neft claims is better than both the Russian Urals blend and Brent.

After the oil reaches CapeKammeny, it is shipped by tankers to world markets. Final prep work will be completed in the coming months, and testing of the terminal will begin in early 2016.

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Terminal plan. Photo from Gazprom Neft