Oil and Gas Logistics in Russia

Russia's нефтегазлогистика are a complex and challenging operation. It takes a long time to develop and operate new fields and upgrade existing infrastructure, while maintaining adequate capacity for the country's rapidly changing energy requirements. The country's massive energy resource base requires ongoing investment and a competitive work ethic that can only be developed through a systematic and enduring process of modernization and reform.

Diesel Fuel

The application of diesel fuel is an essential part of the country's energy mix, as it powers a variety of industrial and transport applications including generators, power plants and automobiles. The demand for diesel fuel is expected to rise in the coming years as the world's population continues to grow and reliance on renewable energies increases.

According to a report published by Newsweek, diesel fuel is the third most used petroleum product in the world, after gasoline and natural gas. It is a vital fuel source for the transportation industry, with more than 80% of all trucks and buses powered by diesel engines.

Despite its importance, diesel is also subject to a number of challenges. In particular, its stability in storage can be a major concern due to the presence of numerous chemical impurities. High temperatures and exposure to water promote bacterial growth that can cause sludge formation.

In order to prevent sludge formation, refiners often select blend stocks to ensure that the resulting diesel fuel meets specific specifications and provides smooth engine performance. They can do this by incorporating additives into the final product, or by improving its fuel characteristics with hydrotreating or other processes.

The use of diesel in Russia is increasing, with production spiking to a record level in December 2022 and peaking at 7.408 million metric tons in January 2023, up from 6.842 million mt in November and 6.683 mt in December 2020. The increase is primarily due to the expansion of the country's refineries.

Its exports, however, are falling. The country has imposed a series of sanctions on its oil and gas sectors and has halted the construction of new natural-gas pipelines in Ukraine, resulting in a drop in the amount of oil being shipped to Europe.

Nevertheless, Russian gas is still being transported through Ukraine to European destinations by a variety of routes. Among these are Nord Stream 1, Yamal-Europe, and Brotherhood, Soyuz and Progress pipelines that together transport a total of 40 billion cubic metres (bcm) of natural gas per annum to Europe.

Another important area of interest for Russian gas is in the Arctic, where the country has developed a number of oil and gas pipelines. This gives it additional flexibility to deliver fossil fuels to markets around the world, especially Asia.

There are a number of ways that Russia could boost its gas and crude oil exports in the future. The government plans to build and expand new liquefied natural gas (LNG) facilities, which will allow it to compete with growing LNG imports from the US, Australia and Qatar.