Eric Watkins
Senior Correspondent
LOS ANGELES, Apr. 13 -- Kazakh President Nursultan Nazarbayev said his country and Russia will increase capacity of the Caspian Pipeline Consortium (CPC) pipeline from 28 million tonnes/year of crude oil to 67 million tonnes/year.
Nazarbayez did not indicate when the increase would take place. Russia's Industry Ministry said CPC shareholder companies would meet with Kazakh representatives in April to settle technical issues.
Kazakhstan is aiming to raise its production of crude oil to 3 million b/d from 1.3 million b/d by 2015 and is seeking additional export routes.
Last December, Kazakhstan inaugurated the 614-mile, 32-in. Atsau-Alaskhankou crude oil pipeline to China, its first bypassing Russia (OGJ Online, Feb. 16, 2006).
Kazakhstan also is being urged to speed up talks on joining the Baku-Tbilisi-Ceyhan (BTC) pipeline project (OGJ Online, Mar. 14, 2006). Kazakh officials say the country could ship up to 30 million tonnes/year of crude oil through the BTC line.
CPC's 1,500-km Tengiz-Novorossiisk pipeline carries crude oil from fields in western Kazakhstan to Russia's Black Sea coast for onward transport by ship and pipeline. In 2005, the CPC increased oil exports by 35.5% to more than 30 million tonnes.
The proposed expansion project involves construction of 10 pumping stations, increased storage capacity for an additional 480,000 tonnes of crude oil, and additional port infrastructure on the Black Sea.
CPC stakeholders include Russia, 24%; Kazakhstan, 19%; Oman, 7%; Chevron Caspian Pipeline Consortium Co., 15%; LUKArco BV, 12.5%; Rosneft/Shell Caspian Ventures Ltd., 7.5%; Mobil Caspian Pipeline Co., 7.5%; Agip International (NA) NV, 2%; BG Overseas Holding Ltd., 2%; Kazakhstan Pipeline Ventures LLC, 1.75%; and Oryx Caspian Pipeline LLC 1.75%.
Contact Eric Watkins at [email protected].