1 Nov 2019 09:49

Russian regulator submits proposals to ensure quality of oil in pipeline system

MOSCOW. Nov 1 (Interfax) - Russia's Federal Antimonopoly Service (FAS) has submitted proposals to the Energy Ministry for ensuring a reliable level of quality of oil transported by trunk pipelines in Russia, the deputy head of the regulator, Anatoly Golomolzin told Interfax.

FAS has proposed to create an "oil quality bank" as a financial instrument to incentivize oil companies to improve the quality of oil delivered into the pipeline system and compensate for the deterioration of quality. The bank will be a mechanism for penalizing and compensating companies depending on the quality of crude they deliver into the trunk pipeline system.

The regulator has also proposed to make a number of selective changes to rules for ensuring non-discriminatory access to the services of natural monopolies for oil transportation. For example, it called for giving of oil companies and Transneft the right to unfettered access to the measuring instruments (laboratory base) of oil metering and quality control points owned by both sides.

The regulator also proposed to stipulate that oil companies and Transneft have the option to access materials from studies of oil quality indicators done at oil metering and quality control points.

"We also see a need to stipulate the right of oil companies to refuse to receive poor quality oil at the point of destination or transfer, while simultaneously stipulating the right of Transneft to refuse to accept oil that does not meet quality standards into a trunk pipeline," Golomolzin said.