Mykola Havrylenko, Ukrtransnafta CEO and Head of the oil division of the Naftogaz Group, announced that JSC Ukrtransnafta received the authorisation to create a licensed customs warehouse as a part of its facilities to provide oil storage services.

According to him, this is about the linear part of the Kremenchuk-Lysychansk oil pipeline, where there is a technical possibility to place about 400,000 tonnes of crude oil, as well as about the Pivdenny Sea Oil Terminal (Odessa region).

Today, the tank farm at Pivdenny maritime oil terminal can accept 200,000 cubic meters, or 170,000 tonnes, but this is not enough even for the placement of oil from two tankers of 90,000 tonnes.

Therefore, the head of Ukrtransnafta said that the company retains plans to expand the tank farm of the Pivdenny Sea Oil Terminal with the installation of four tanks with a capacity of 120,000 tonnes each.

As reported, Ukrtransnafta applied to the Ministry of Finance in order to obtain permission to create a licensed customs warehouse on the basis of its capacities to provide oil storage services in April 2020.

We submitted relevant initiatives to the Ministry of Finance, where, among other things, we propose recognizing the inactive section of the pipeline with certain nuances. If this is accepted, we will be able to enter the market with such capacity as this linear part of the pipeline.

Mykola Havrylenko, CEO of Ukrtransnafta

An interest in storing oil in Ukraine in the spring, against the background of an oversupply of oil on the market, in particular, was shown by the Azerbaijani State company SOCAR.