Azerbaijan, Baku, Dec. 16 /Trend, E.Ismayilova/
A final decision was made on investing in the project on expansion of mechanical capacity of the Caspian Pipeline Consortium (CPC) to 67 million tons per year, Kazakhstan KazMunaiGaz National Company said in a statement on Wednesday.
According to the information, Russian Energy Minister Sergei Shmatko and Deputy Minister of Oil and Gas of Kazakhstan Lyazzat Kiinov, representatives of national companies "Transneft" and "KMG", as well as CEO of the CTC signed a document starting works to increase the throughput capacity of the system.
The decision determines all parameters of the project: from the financial-economic and implementation schedule to the issues of industrial safety and environmental protection. Construction work will begin next spring. System expansion is planned in three stages, to be fully completed in 2014.
CPC expansion project cost will amount to $5.4 billion. The main source of funding for the project will be own funds of the CTC.
CPC expansion project envisages construction of ten additional pumping stations (two - on the territory of Kazakhstan, eight - Russia), six crude oil storage tanks near Novorossiysk and the third point mooring in the Marine Terminal CTC and the replacement of 88-mi kilometers of pipeline in Kazakhstan.
CPC Shareholders: Russian Federation (represented by Transneft - 24% and CPC Company - 7%) - 31%; Republic of Kazakhstan (represented by KazMunaiGaz - 19% and Kazakhstan Pipeline Ventures LLC - 1.75%) - 20.75%; Chevron Caspian Pipeline Consortium Company - 15%; LUKARCO B.V. - 12.5%; Mobil Caspian Pipeline Company - 7.5%; Rosneft-Shell Caspian Ventures Limited - 7.5%; BG Overseas Holding Limited - 2%; Eni International N.A. N.V. - 2%; and Oryx Caspian Pipeline LLC - 1.75%.