* Surgut to transport diesel by rail from its Kirishi
* Main diesel terminal in Primorsk reaches full capacity
By Ron Bousso and Natalia Chumakova
LONDON/MOSCOW, May 14 Surgutneftegas
will start exporting diesel from the Baltic port of Ust Luga
next month after extensive modernising upgrades to Russian
refineries have created a surplus of higher grade fuels, traders
Russian refiners are struggling to find new ports to cope,
with the Baltic's Primorsk already at full capacity.
Surgut, Russia's third-largest oil producer, plans to
transport diesel by rail from its 420,000 barrels-per-day (bpd)
Kirishi refinery in northwest Russia to Ust Luga.
From there it will be exported from the Sibur-Portenergo
terminal owned by Sibur, Russia's top petrochemical company, the
trading sources said.
Initial exports were expected to total around 60,000 tonnes
of diesel per month, or roughly two cargoes. Most Russian diesel
exports from the Baltic Sea go to Europe.
Europe's refineries have been hammered over the past year by
growing imports of cheap and high quality diesel from Russia and
the United States. Any further increase in imports will put even
more pressure on refining margins in the region.
Acording to the sources, Sibur plans to expand the capacity
of its terminal, used so far for exports of naphtha and liquid
petroleum gas (LPG).
Surgut and Sibur declined to comment.
Diesel exports from the main Baltic terminal of Primorsk
have reached the maximum capacity of nearly 1 million tonnes per
Traders have said Primorsk will export 10.16 million tonnes
of diesel this year, up 26 percent from 2013
Russia's oil pipeline monopoly Transneft said in
March it plans to boost diesel exports from the Baltic Sea port
of Primorsk after 2016 to around 23 million tonnes a year.
Transneft is also planned to complete by the end of 2014 the
construction of a pipeline from the Kirishi refinery to
Last December, Surgut launched a 98,000 bpd hydrocracker
complex at the Kirishi refinery to allow it to increase
production of high-grade, ultra low sulphur diesel.
(Editing by William Hardy)