Operations

Pan European has a 100% interest in TDKN, a Russian limited liability company formed in 2005, which has an exclusive agreement with the Russian Naval Authorities to refurbish and manage, for commercial customers, an oil and refined product export transhipment terminal.

The terminal is located on the north bank of the Pregol River at the entrance of the channel from the Baltic Sea and lies approximately 38 kilometres to the west of Kaliningrad, close to the Rosebunker Terminal.

TDKN will represent a significant increase in Pan European’s planned terminal operations transhipment capacity. The agreement is for a period of five years and is renewable for periods of five years thereafter. Under this agreement, TDKN will pay a fee on the basis of throughput tonnage.

Refurbishment of the facility is complete. Crude or product will be delivered to the site by rail. These railcars will be unloaded via an unloading rack, able to take up to 15 cars at a time, and the crude or product will then be piped into the terminal for temporary storage before onward loading and export at the jetty.

TDKN intends to use existing tank capacity and infrastructure, all operationally ready, to start loading in 2008, subject to Naval approval. It is anticipated that a throughput rate of around 30,000 tonnes/month should be achievable soon after the approval has been granted, although Pan European expects this to rise thereafter.