Caspian Pipeline Consortium Eyes To Boost Annual Transportation Volumes (Exclusive)

(MENAFN- Trend News Agency) ASTANA, Kazakhstan, September 18. The Caspian Pipeline Consortium (CPC) is ready to increase transportation volumes to 83 million tons per year, the company told Trend .

The CPC pipeline system is one of the largest investment projects in the energy sector with the participation of foreign capital in the CIS. It is unique in its own way, especially in the current Political and economic situation in the region and the world. The length of the Tengiz – Novorossiysk oil pipeline is 1,511 km. More than two-thirds of all Kazakh oil exports, as well as raw materials from Russian fields, including those located in the Caspian Sea, are transported along this route.

Light oil of the CPC Blend grade has 0.54 percent sulfur and API density of 44.5. Shippers' interests are monitored by the company's Petroleum Quality Bank. Initially, the CPC system was conceived for deliveries mainly to the Mediterranean region, but for about 10 years now, supplies have gone far beyond its borders. CPC oil goes to markets around the world, to refineries in different countries.

Transportation of oil via the CPC oil pipeline and its loading onto tankers from remote mooring facilities in the Novorossiysk area began in 2001. In 2022, the total amount of oil shipped exceeded 800 million tons; in May 2023, an 8,000-ton tanker was filled with oil at the CPC Marine Terminal.

As the company said, taking into account shareholders' plans to increase oil production in Western Kazakhstan, CPC has been implementing a Debottlenecking Program (DBNP) since 2018 to increase the throughput of the oil pipeline. The total budget of the DBNP is more than $600 million. Currently, the main facilities of the DBNP have been built and put into operation, thanks to which the CPC has actually achieved readiness to transport oil in the amount of up to 72.5 million tons per year through the territory of Kazakhstan and up to 83 million tons per year through the territory of Russia.

Thus, by the end of 2023, the Consortium plans to complete work on the remaining DBNP facilities, in 2024 to begin replacing pipeline sections in the Atyrau and Astrakhan regions, and in 2026 to replace two remote mooring devices at the Marine Terminal.

Speaking about operating results, the company said that, in the first half of 2023, 32 million tons of oil were transported via the Tengiz-Novorossiysk oil pipeline, which 3 percent more than the same period in 2022. Previously, the company's management reported that by the end of 2023, pumping in the amount of 61-62 million tons of oil was forecast.

CPC shareholders include: Federal Agency for State Property Management represented by Transneft PJSC (trust management) - 24 percent, CPC Company - 7 percent, KazMunayGas - 19 percent, Kazakhstan Pipeline Ventures LLC - 1.75 percent, Chevron Caspian Pipeline Consortium Company – 15 percent, LUKARCOB.V. – 12.5 percent, Mobil Caspian Pipeline Company – 7.5 percent, Rosneft-Shell Caspian Ventures Limited – 7.5 percent, BG Overseas Holdings Limited – 2 percent, Eni International N.A. N.V. – 2 percent and Oryx Caspian Pipeline LLC – 1.75 percent.

As CPC said, in the current situation, communications with shareholders from different countries are not a problem.

"An algorithm for making corporate decisions via secure communication channels has been developed, face-to-face meetings are held in countries where all shareholders can be present - Kazakhstan, the UAE, Türkiye," the CPC said.


Trend News Agency

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