CEC chief Pavel Strelnikov’s instruction may halt bunkering of tankers in Port of Ust-Luga, market participants say

Pavel Strelnikov, Chief of the Central Energy Customs (CEC) forwarded an instruction (a copy of which dated 22.08.2013 was obtained by IAA PortNews) on the location designated for the customs operations in respect of goods declared as sea stores (including bunker fuels) to all heads of energy customs posts in Russia. The move may halt bunkering of tankers at the port of Ust-Luga, Leningrad region, the bunker market participants told PortNews.

According to bunker suppliers, the order of the Customs chief reads that if a port has a dedicated oil terminal the bunkering operation can be carried out only in its berth.

Spokespersons of bunker suppliers, major players of the market, told PortNews that all tankers making calls at the port of Ust Luga, are currently supplied with bunker fuels on the inner anchorage of the port (Anchorage No 11) in accordance with the Scheme of RF border crossing procedure by persons, vehicles, cargoes, goods, animals, at marine checkpoint of seaport of Ust-Luga.

The new order of the CEC official, the market participants say, prescribes to conduct bunkering at berths of existing oil terminals of the port. There are several specialized terminals of an oil cargo complex of JSC RosneftBunker, LLC Novatek-Ust-Luga and, in an experimental mode – of Sibur-Portenergo.

Meanwhile, the oil terminal operators refuse to provide places for bunkering operations at their berths as they do not have the necessary equipment or capabilities.

A number of large Russian bunkering companies surveyed by PortNews, said that as a result, the bunkering of tankers, which constitute a large part of calls at the port of Ust-Luga, will be stopped.

Eventually, this will have a negative impact on the attractiveness of the major Russian port that can not ensure an essential service - bunkering of tankers.

Interlocutors of PortNews at large Russian bunkering companies alleged that the Energy customs authorities’ move will be profitable only for LLC Transneft-Service and its units.

Currently the Central Energy Customs comprises nine Energy Customs offices (Moscow, Interregional, Southern, Northern, North - West, Kaliningrad, Kavkaz, the Far Eastern and Astrakhan), which were established in five federal districts of the Russian Federation.