Bunkering

The Company’s subsidiary LLC Gazpromneft Marine Bunker handles sales of light and dark blends of marine fuel for sea and river transportation. Having its own infrastructure enables LLC Gazpromneft Marine Bunker to sell high-quality marine fuels produced by the Omsk and Moscow Oil Refineries at all key Russian sea and river ports.

One of the competitive advantages that makes it possible to implement the ambitious plans of LLC Gazpromneft Marine Bunker is the existence of a well-developed terminal network that was built by acquiring its own terminals and building long-term partnerships with third party terminals.

The clients of LLC Gazpromneft Marine Bunker are major Russian and foreign shipping companies. In particular, during the reporting year a series of long-term strategic contracts for the supply of marine fuels were signed with such key customers as: ZIM, MSC, Maersk, CSCL, Royal Caribbean and BashVolgotanker SC.

Regions of operation

LLC Gazpromneft Marine Bunker has the most extensive geography for operations among all national bunkering companies in Russia: 20 seaports and 13 river ports. Over the last year, the Company has launched bunkering at the ports of Novosibirsk and Tomsk as well as Latvian ports in order to consolidate its positions in the Baltic Sea region.

LLC Gazpromneft Marine bunker has nine regional offices and six subsidiaries:
  • LLC Gazpromneft Shipping manages a bunker fleet comprised of nine of its own bunkering ships: four ships in St Petersburg, four in the Black Sea and one in the Far East
  • LLC Gazpromneft Terminal SPb operates a bunkering terminal with long-term lease rights on the territory of the Kirov Plant in St Petersburg
  • Gazpromneft Marine Bunker Balkan S.A. sells marine fuel in Romania at Constanta port
  • AS Baltic Marine Bunker sells marine fuel at the ports of Tallinn and Riga
  • LLC Novorosnefteservice and the LLC Novorossiysk Oil Transshipment Complex handle the transshipment of petroleum products at their own bunkering terminal in Novorossiysk.

“Having a broad geography, its own fleet and terminal assets, high quality service standards and direct contracts with major consumers of bunker fuel are some of the advantages that enable our Company confident leadership on the Russian bunkering market. In the future, we plan to more than double our fleet. We will also increase investment in the modernisation of our terminal facilities.Starting in 2015, stringent standards for sulphur content in fuel will take effect in EU zones and demand will increase for low-sulphur fuel. In this regard, we are focused on developing a new bunkering market segment for liquefied natural gas. We anticipate having strong positions in this sphere by 2025.”

Andrey vasilyev CEO of LLC Gazpromneft Marine bunker

Performance results in 2014

The Company holds leading positions on the Russian bunkering market with an 18.6% market share.

In 2014, “direct to ship” bunkering increased by 43% and totalled 3.4 mn tonnes. Total cumulative annual sales of petroleum products grew by 29.7% compared with 2013 to 4.2 mn tonnes.

3.4 mn t ↑43%
«direct to ship» bunkering in 2014

In 2014, Gazpromneft Marine Bunker updated its long-term development strategy for the bunkering business to 2025.

The Company continues to implement strategic initiatives to establish a new segment on the bunkering market — LNG bunkering at Russian ports. There has been dynamic development of global scale projects to build LNG infrastructure with most of them concentrated in the European region. LNG bunkering infrastructure is set to be developed at key ports around the world located along major shipping routes.

4.20 mn t ↑29,7%
premium sales of marine fuel in 2014

The implementation of such large-scale plans requires the Company to continuously strengthen its competitive advantages, one of which is the availability of its own bunkering fleet. Gazpromneft Marine Bunker plans include further expansion of its fleet, increasing the number of ships in Russia and abroad to 29 by 2025.

The trend towards increased fleet tonnage dictates new bunkering standards: the need for large-capacity bunkering tankers in order to increase the volume of one-time “direct to ship” bunkering of large-capacity vessels. Responding to market demands, Gazpromneft Omsk acquired a new large-capacity bunkering tanker in the reporting year for the bunkering of vessels at Black Sea ports. The tanker is to be commissioned in February 2015.

Premium sales of marine fuel, mn t
Market share of LLC Gazpromneft Marine Bunker, %

LLC Gazpromneft Marine Bunker supplied bunker fuel for cruise liners that were designed to accommodate client groups, spectators and personnel during the XXII 2014 Olympic Winter Games and XI Paralympic Winter Games in Sochi.