Far East in wait for hub

A bunker hub with LNG bunkering center is to be developed in port Slavyanka of the Primorsk Territory. With that, experts think it would be reasonable to ban the use of straight-run fuel oil as bunker but forward it for production of cracked oil instead.

New market of cracked oil

Cracked oil is the final phase of processing which cannot be further processed for production of other oil products.

The fleet worldwide operates on heavy fuel oil today. The development of a Bunker Hub will facilitated the creation of cracked oil market, which is new for Russia. The production of cracked oil will become possible through implementation of the programme on modernization of refineries.

One of the tasks of the bunker hub is to arrange a cracked oil sales market in Russia, having ensured a steady demand of bunker fuel. It is profitable for both Russia and foreign customers. 

Besides, the Bunker Hub can serve as a platform for organization of an international LNG bunker center, like projects being implemented in Singapore, China and Korea. 

As of today, there are 29 refineries in Russia with the majority concentrated in the western part of the country. With marine transport as the optimal way to deliver heavy fuel oil to the Far East, Tranzit-DV Group is implementing the project “Long-rage coastal shipping”. For that purpose the company acquires several tankers of adequate ice class.

To develop the regional and national economy, it is necessary to ban the use of straight-run fuel oil as bunker; the largest possible volumes of straight-run fuel oil should be processed in Russia while all cracked oil should be placed at bonded warehouses intended for export bunkering to ensure comprehensive control of refining in Russia.

Seaports’ bonded areas are international zones at the crossing of customs territory of the Customs Union intended for placement, storing in onshore or floating tanks as well as supply of bonded bunker to marine vessels.

In the result, operational Bunker Hub will give an impetus to the economic development of Russia’s Far East and ensure stable growth of revenues increasing the state budget. It will be driven by new infrastructure facilities: marine and railway terminals, transport and logistic complexes, hotels. It will also give a multiplicative effect for both Far East District economy and the entire country as well. 

Provided to IAA PortNews by Tranzit-DV Group