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Russian firm SIBUR LLC has announced that construction work has commenced at the Russian port of Ust-Luga, to build a new liquefied petroleum gas (LPG) transshipment complex.

Once completed, the new export terminal will be the largest LPG transshipment terminal in Russia and, as a result, is expected to also lead to a rise in bunker sales at the strategically-located port.

The design capacity of the new complex is 1.5 million tonnes per year of liquefied petroleum gases and 2.5 million tonnes per year of light oils.

Situated on the Luga River, approximately 110 kilometres west of St. Petersburg, Ust-Luga is practically at the border of the Russian Federation and the European Union.

The deep water area of the port (17 m) together with the 3,700-metre approach canal make Ust-Luga port the only Russian port on the Baltic Sea capable of admitting dry-cargo vessels with a deadweight of up to 75,000 tonnes and liquid cargo carriers with a deadweight of up to 120,000 tonnes.

SIBUR said the favorable geographic location of Ust-Luga will enable the company to transport its products to previously inaccessible markets in North-West Europe.

The first phase of the project will include construction of motorcar approach ways, water discharge facilities, and a railway dead-end track with platforms for the reception and storage of cargoes during the construction period.

The project is being managed by SIBUR-Portenergo LLC, a subsidiary company of SIBUR. The general contractor is Engineering Corporation Transstroy CJSC.

There are currently six terminals operating in Ust-Luga port: a coal transshipment terminal, the Universal transloading complex, a terminal for technical sulphur transshipment, a motor-railway ferry complex, the actively developing Yug-2 Multipurpose transloading complex and the 'Factor’ timber terminal.

An oil cargo complex is expected to be put into operation before the end of the year and there are also plans to launch a container terminal.