23 Sep 2010 13:03

CPC plans to secure outside power supply deal with Kubanenergo by year-end

NOVOROSSIYSK. Sept 23 (Interfax) - The Caspian Pipeline Consortium (CPC) plans to procure an outside supply of 2 mWt of electrical power by the end of this year, and to that end is negotiating with Kubanenergo , CPC told Interfax.

CPC currently has to supply itself with electricity using turbine generators running on diesel fuel.

An outside power supplier would allow the consortium to cut its power costs and to reduce harmful atmospheric emissions, CPC said. After the CPC-expansion project is completed, the consortium's power needs will increase to 6.7 mWt.

The consortium operates the 1,511-km Tengiz-Novorossiysk oil pipeline running from deposits in western Kazakhstan to Russia's Black Sea coast. The CPC's sovereign shareholders are Russia with 31% (managed by Transneft - 24% and CPC Company - 7%) and Kazakhstan has 20.75% (KazMunaiGas - 19% and Kazakhstan Pipeline Ventures LLC - 1.75%). The rest of the consortium belongs to private companies: Chevron Caspian Pipeline Consortium Company (15%), LUKARCO B.V. (12.5%), Rosneft-Shell Caspian Ventures Limited (7.5%), Mobil Caspian Pipeline Company (7.5%), Eni International (N.A.) N.V. (2%), BG Overseas Holding Ltd (2%) and Oryx Caspian Pipeline LLC (1.75%).

Capacity is currently 28.2 million tons per year, but actual throughput can exceed 30 million tons if anti-friction additives are used. The CPC pumped 34.57 million tons of export crude in 2009, 9.9% more than in 2008. It has pumped more than 225 million tons since going into service in 2001.

The CPC's estimated $4.6-billion phased expansion project, as approved at the end of 2009, is aimed at boosting throughput capacity from 32 million to 67 million tons. The project foresees the construction of ten additional oil-pumping stations (two in Kazakhstan and eight in Russia), six reservoirs for oil storage near Novorossiysk and a third single buoy mooring at CPC's sea terminal. The consortium also plans to replace 88 kilometers of pipeline in Kazakhstan.