Kazakh minister: Direction of Kazakh oil transportation being worked out

Oil&Gas Materials 7 October 2010 10:18 (UTC +04:00)

Azerbaijan, Baku, Oct. 7 / Trend E.Ismayilov S.Suleymanov /

Work is underway to elaborate the directions in which Kazakh oil under theTrans-Caspian System could be transported, Kazakh Oil and Gas Minister Sauat Mynbayev said on Tuesday at the Fifth Eurasian Forum KAZENERGY in Astana. The Trans-Caspian System will transport Kazakh oil through Azerbaijan.

Mynbayev said the implementation of the system is linked with the second stage of development of the Kashagan field in 2018-2020.

"In the second phase of the Kashagan we link with the Trans-Caspian direction with access to the Baku-Tbilisi-Ceyhan oil pipeline, and, separately, to the Black Sea ports. These lines are already actively being worked with the establishment of a joint company with Azerbaijan to develop a feasibility study for this project," he said.

The national oil companies of Kazakhstan and Azerbaijan - KazMunaiGaz and SOCAR - signed an agreement to establish a Trans-Caspian System in Baku in late 2008. At the initial stage, it must provide the possibility of transporting the Kashagan oil via the Caspian Sea and the Caucasus to world markets in a volume of 23 million tons with a subsequent increase to 35-56 million tons per year.

The Trans-Caspian System is intended for marine oil transportation from Kazakhstan to Azerbaijan across the Caspian Sea to the Baku-Tbilisi-Ceyhan system and includes oil loading terminal on the Caspian shore of the Republic of Kazakhstan, tankers and ships, oil offloading terminal on the Caspian shore of the Republic of Azerbaijan, and connection facilities to the Baku-Tbilisi-Ceyhan system.

The project participants agreed on its expansion, Mynbayev added. A final investment decision will be taken by late 2010 and the start of construction is scheduled for March-April next year. The expanded tube quota of Kazakhstan will be increased from 27 million tons to 52.5 million tons.

Regarding the Kazakhstan-China pipeline, Mynbayev said its capacity is 10 million tons per year. The sides signed an agreement to expand the capacity up to 20 million tons. The figure is expected to reach 12 million tons a year in 2011, he said.

The Turkmenistan-China transit gas pipeline, with capacity of 30 billion cubic meters, was commissioned in 2009. Kazakhstan intends to join it through the construction of the domestic gas pipeline Beyneu-Shimkent with pumping capacity of 10 billion cubic meters

At the initial phase, this route is expected to pump 5 billion cubic meters The main objective is to ensure south of Kazakhstan with gas. In this case, the pipeline can perform a function to export the gas.

Do you have any feedback? Contact our journalist at: [email protected]