Ventspils banks on crude switch; the demise of Siberian Light would free up pipeline capacity, diverting oil to the out-of-favour Latvian port.

Exports of Russian Urals crude through the Latvian port of Ventspils could resume later this year if plans to end exports of Siberian Light as a separate stream are implemented. But terminal operator Ventspils Nafta will first need to resolve a spat with Russian pipeline operator Transneft, which has seen volumes at the port grind to a halt.

Phasing out exports of Siberian Light would free capacity in sections of the Transneft pipeline network that are currently dedicated to the light sweet export blend. The space created could instead be used to transport Russia's main export blend, medium sour Urals. And the Latvian port would be an obvious conduit for these …