First Kashagan oil is in CPC Pipeline System
The crude oil from Kashagan oil field in Kazakhstan has started coming into the Caspian Pipeline Consortium’s system, CPC says in a press release. It is expected that in 2016 the Consortium transport about 1 M tons of Kashagan oil. And already next year – in 2017 – the volumes of crude oil shipped from that field through CPC system may amount to 12 M tons.
“We currently receive up to 10 thousand tons per day and expect these volumes to grow. The necessary surplus capacities have been created in the pipeline system on time and we are ready to meet all nominations of our Shareholders”, – noted CPC General Director Nikolay Gorban.
Just as a reminder: in 2017 Caspian Pipeline Consortium will complete the Expansion Project and reach the transportation level of 67 M tons of crude oil per annum. Kazakhstani producer will account for 56 M tons of that volume and Russian producers - for 11 M tons.
CPC pipeline system is one of the largest investment projects in the energy industry with participation of foreign capital on the CIS territory. The length of the pipeline connecting the oil fields in Western Kazakhstan with the Marine Terminal near Novorossiysk is 1,511 km. CPC Marine Terminal is equipped with single point moorings which allow for safe tanker lifting at a considerable distance from the shore, also when the weather conditions are unfavorable.
The Expansion Project includes rehabilitation of 5 existing and construction of 10 additional pump stations (2 in the Republic of Kazakhstan and 8 in the Russian Federation), six new storage tanks (100,000 cu.m each) in addition to the existing four near Novorossiysk and a third SPM at the CPC Marine Terminal, and also the replacement of an 88 km pipeline section in Kazakhstan with a larger diameter pipe. The total amount of the Project investments will be US$ 5.4 billion.
CPC Shareholders: Russian Federation (represented by Transneft – 24% and CPC Company – 7 %) – 31%; Republic of Kazakhstan (represented by KazMunayGaz – 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% и Oryx Caspian Pipeline LLC – 1.75%.
