Status of pipeline projects in Kazakhstan as of December

Oil&Gas Materials 23 December 2011 18:03 (UTC +04:00)

Kazakhstan, Astana, Dec.22 / Trend, K.Konyrova /

Kazakhstan is a country that does not have access to open sea. Therefore, access to export markets, primarily through main pipelines is crucial for the country. Today, the following pipeline projects are developed in the country:

Caspian Pipeline Consortium (CPC) (Tengiz - Novorossiysk)

The Caspian Pipeline Consortium (CPC) is international stock company constructing and operating the CPC pipeline, which links the Western Kazakhstan fields (Tengiz, Karachaganak) with the Russian Black Sea coast (Southern Ozerevka terminal near Novorossiysk).

The shareholders of the consortium are Transneft " (Russia) - 24 percent, CPC Company (Russia) - 7 percent, "KazMunaiGas" (Kazakhstan) - 19 percent, Kazakhstan Pipeline Ventures LLC (Kazakhstan) - 1.75 percent, Chevron Caspian Pipeline Consortium Company - 15 percent, LUKARCO B.V. - 12.5 percent, Mobil Caspian Pipeline Company - 7.5 percent, Rosneft-Shell Caspian Ventures Limited - 7.5 percent, BG Overseas Holding Limited - 2 percent, Eni International N.A. N.V. - 2 percent, Oryx Caspian Pipeline LLC - 1.75 percent.

Project status

Length of the oil pipeline is 1,510 km. Capacity of the first stage - 28.2 million tons per year, including 22 million tons of Caspian oil. Full capacity will be reached by mid-2004.
Initially, the project was developed with the expectation that its initial capacity will be increased to 67 million tons per year. It is necessary to construct new pumping stations, oil storage tanks at the terminal in Novorossiysk in this regard.

Project of expansion of the Caspian Pipeline Consortium was launched. A 52-million ton capacity per year for Kazakh oil is expected to be available in the first quarter of 2015. Expansion is planned in three phases with full completion of the process in 2014. CPC expansion project envisages the construction of 10 additional oil pumping stations (two - in Kazakhstan, eight - in Russia), six crude oil storage tanks in Novorossiysk and third mooring facility at the CPC Sea Terminal, as well as replacement of 88 kilometers of the pipeline in Kazakhstan. The cost of expansion will hit $5.4 billion. The main financing source will be CPC own funds.

Uzen - Atyrau - Samara Oil Pipeline

The Uzen - Atyrau - Samara oil pipeline envisages access to the Eastern Europe's markets through Russia. The pipeline originates from the Uzen field to Atyrau oil refinery, connects to Samara or "Transneft" oil pipelines system.

Owners of the oil pipeline are the Kazakh transport company "KazTransOil" to the Russian border, on Russian territory - Russian transport company "Transneft".

The oil pipeline is operated by the Western branch of CJSC "KazTransOil" (in Kazakhstan) and JSC "Privolzhsknefteprovod" of "Transneft" (in Russian territory).

Project Status

The length of the Uzen-Atyrau-Samara oil pipeline is over 1,380 km, while 1,232 km in the territory of Kazakhstan. Volume of pumped oil is 15.75 million tons. The maximum capacity of the oil pipeline is 30 million tons of oil.

"Atyrau-Kenkiyak-Kumkol-Atasu-Alashankou" oil pipeline

The "Atyrau-Kenkiyak-Kumkol-Atasu-Alashankou" oil pipeline is run by the Company "Kazakhstan-China pipeline." Its shareholders are "KazTransOil" and China National Oil and Gas Exploration and Development Corporation (CNODC) on terms of equal shares. The pipeline receives oil mostly from the Kumkol field, but in future it is supposed to pump oil produced in the Mangistau region and from the Kashagan field.

Project Status

New oil pumping station was commissioned at the Usharal station on Dec.14, 2011, which will increase the productivity of the oil pipeline from 10 to 12 million tons.
NPC No.8 in the Agadyr and NPC N.10 in the Sayak area will be commissioned at the Atasu-Alashankou site in 2012-2013.
Five pumping stations will be built in the west on the Kenkiyak - Kumkol site.

Kazakhstan Caspian Oil Transportation System (KCTS)

CTS will consist Eskene-Kurik pipeline, system of tanker supplies from the Kurik Port and further by Baku-Tbilisi-Ceyhan pipeline.

Kazakhstan links launch of new logistic route - Kazakhstan Caspian Oil Transportation System with launch of the second phase of Kashagan.

Multi-transport KCTS should have initial capacity of 23 million tons per year.

Project Status

There is no information on the volumes on the second phase of the Kashagan production yet, as the budget of the project's second phase has not approved yet. According to the Kazakh Oil Ministry, production on the second phase will fall to the period no earlier than 2018-2019, respectively, KCTS will start functioning by this time.