Shell Unit to Build Depot, Supply Fuel to St. Petersburg Airport

Royal Dutch Shell Plc (RDSA)’s venture with Russia’s OOO Aerofuels Group will invest $5 million in a fuel storage depot at St. Petersburg’s Pulkovo Airport as it begins supplying jet fuel to Russia’s third-biggest airport.

ZAO Shell will build the kerosene depot with a capacity of 40,000 tons in the third quarter of this year, said Paul Cluett, the venture’s general director, at a briefing in Russia’s second-biggest city today.

The venture would cut into the fuel-supply monopoly of ZAO Sovex, a joint venture of OAO Lukoil (LKOH) and OAO Gazprom Neft (GAZ), by supplying as much as 10 percent of the airport’s fuel needs, said Sergei Emdin, the general director for Pulkovo operator OOO Northern Capital Gateway. Sovex sold about 420,000 tons of fuel to the airport in 2012, Emdin said.

Pulkovo is “attractive with high-speed development,” said Cluett. “The company expects to enter other regional airports in Russia.”

Russian airports handled 166.8 million passengers in 2012, 17 percent more than a year earlier, according to the Transportation Ministry. Pulkovo handled about 11 million passengers, 16 percent more than in 2011.

To contact the reporter on this story: Anatoly Temkin in St. Petersburg at atemkin@bloomberg.net

To contact the editor responsible for this story: James M. Gomez at jagomez@bloomberg.net

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