Kazakhstan plans to use Trans-Caspian route to diversify oil exports starting in 2024
ASTANA. Oct 21 (Interfax) - Kazakhstan aims to use the Trans-Caspian International Transport Route to diversify oil exports starting in 2024, when the country boosts output, Kazakh Energy Minister Bolat Akchulakov said.
"If we talk about massive, huge shipments via the Trans-Caspian, we would want to be ready to have such routes by the time production increases in Kazakhstan, as one of the routes that allows us to diversify our exports," Akchulakov said at a press briefing in Astana on Friday.
An increase in oil production of approximately 12 million tonnes is expected in mid-2024 based on the results of the program for the future expansion of the Tengiz field, he said.
"We should start using approximately some part of these volumes in full for the so-called diversification routes through the Caspian Sea. But before that, we should discuss whether the other side is ready to accept such volumes of oil into its oil pipeline system," Akchulakov said.
In order to use this route, "a fairly large amount of infrastructure will need to be implemented, including not only pipeline transport and berthing facilities, but also increasing the number of tankers in the Caspian Sea that can transport this oil," he said.
"This issue is complex and is being thoroughly studied by us," Akchulakov said.
Kazakhstan currently exports 65-67 million tonnes annually through two oil pipelines, the Caspian Pipeline Consortium (CPC) and Atyrau-Samara, he said.
Kazakh President Kassym-Jomart Tokayev instructed KazMunayGas to work out the best possible options for using the Trans-Caspian route to diversify Kazakh oil supplies at the beginning of July.
The Trans-Caspian International Transport Route runs through China, Kazakhstan, the Caspian Sea, Azerbaijan, Georgia, and subsequently to Turkey and countries of Europe. The Baku-Tbilisi-Kars railway is part of the corridor.
The CPC is currently Kazakhstan's main oil export artery accounting for over 80% of the crude pumped through pipelines. Its throughput capacity is 67 million tonnes per year.
The need to develop an alternative route for the export of oil in Kazakhstan was first discussed following reports on the possible suspension of the operations of the CPC sea terminal by court decision in order to eliminate violations of environmental legislation. This was preceded by restrictions imposed on the operation of berthing facilities in connection with inspection of the water area for explosive objects, although the measures did not affect the implementation of the CPC shipping schedule, as well as a suspension of shipments from CPC moorings in March due to the aftermath of a storm that lasted almost a month.