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Transneft told to fix Druzhba pipeline in two weeks
16:23, 10/04/2007

Russia`s technological watchdog, Rostekhnadzor, instructed pipeline monopoly Transneft [RTS: TRNF] Tuesday to repair the dangerous defects on two sections of the Druzhba oil pipeline within two weeks.

The Druzhba pipeline carries Russian crude to Germany, Poland and Ukraine, with a capacity of 81 million metric tons a year, including the Belarusian section, Unecha-Mozyr.

Rostekhnadzor said it had demanded that the Druzhba owners improve overall safety standards and repair the pipeline`s Unecha-Polotsk-1 and Unecha-Polotsk-2 sections.

Last July, an oil spill on a western section of the pipeline caused shipments to Lithuania`s Mazeikiu nafta refinery to be suspended.

Lithuania has accused Moscow of dragging its feet on the repair work, which is ongoing.

Russia`s continued suspension of crude supplies to the Mazeikiu nafta refinery was seen by analysts as a punitive measure following the Lithuanian government`s decision to sell the refinery to PKN Orlen, rejecting Russian bids.

Poland is currently pressuring Russia to sign an international energy treaty entailing supply guarantees.

The Lithuanian energy strategy, which must still be approved by the country`s parliament, also envisions commissioning a new nuclear power plant by 2015, connecting the national power transmission network with Scandinavian and Polish grids by 2012, and building a regional gas storage facility and a liquefied natural gas terminal.

The document also says that the share of energy resources each country exports to Lithuania cannot exceed 30% of the Baltic state`s energy balance.

Russia`s energy spats with Belarus and Ukraine have undermined its reputation as a reliable energy supplier and drawn accusations that it uses energy as a political lever.




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