27 May 2022 14:26

CPC terminal back to normal, accepting Kazakh oil in previous volumes

ALMATY. May 27 (Interfax) - Caspian Pipeline Consortium (CPC) has lifted loading restrictions on all single-point moorings (SPM), which are now accepting all oil from the Kazakh suppliers without any limitations, the press service of the Kazakh government said in a press release on Friday.

Kazakh Prime Minister Alikhan Smailov and CPC General Director Nikolay Gorban discussed in Nur-Sultan issues relating to further cooperation in Kazakh oil transportation for exports, according to the press release.

"We are pleased that the repairs of CPC's single-point moorings have been completed. This has led to the lifting of all previous restrictions, as well as limitations on oil production in Kazakhstan," Smailov is quoted as saying.

The CPC debottlenecking project needs to be completed on schedule in order to increase the throughput capacity of the CPC pipelines, the prime minister added.

On March 23, the CPC suspended oil loading at its terminal due to discovered and potential damage to single-point moorings caused by bad weather.

On March 28, CPC resumed oil pumping into the Tengiz-Novorossiysk pipeline at a minimum rate, and also resumed oil loading onto tankers through SPM-1 (single point mooring).

Repairs of SPM-2 and SPM-3 took one month and were completed on April 23, when CPC resumed normal loading operations.

The CPC Tengiz-Novorossisk pipeline is 1,511 km long and links the oil fields in west Kazakhstan with Russia's Black Sea coast. In 2018, CPC completed an expansion project to increase the throughput capacity of the pipeline to 67 million tonnes of oil a year. CPC is currently implementing a debottlenecking project which will increase its throughput capacity to 83 million tonnes a year by the end of 2023.

Kazakhstan exports over 80% of its oil through the CPC pipeline.

The sovereign shareholders of Caspian Pipeline Consortium (CPC) are: Russia with a 31% stake managed by Transneft (24%) and CPC Company (7%), and Kazakhstan with 20.75%, managed by KazMunayGas (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%), 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%).