Oil Minister on oil transportation routes

Kazakhstan’s Minister of Oil and Gas Sauat Mynbayev doesn’t rule out shipments of Kazakh oil via the Baku – Tbilissi – Ceyhan oil pipeline in future, Newskaz.ru reports. “Through the Caspian seaport of Aktau Kazakhstan plans to export 8 million tons of crude in 2012, with the crude being sent to the Black Sea through Makhachkala and to Batumi through Baku. Part of the crude may be supplied into the BTC pipeline in case it offers some spare capacities and if the conditions are economically acceptable for Kazakhstan”, the Minister said when speaking at the KazEnergy Oil Conference held in Astana October 2. According to the Minister, 29 million tons of Kazakh crude are going to be sent into the Caspian Pipeline Consortium (CPC) pipes. “The project to expand the pipeline is under way. Expansion will enable to export 52 million tons of Kazakh crude a year. The project comprises three stages, with the third stage being completed in 2015. The CPC is the most effective direction for Kazakhstan”, the Minister said. Caspian Pipeline Consortium (CPC) is a major international crude oil transportation project with the participation of Russia, Kazakhstan and leading international oil and gas companies, created for construction and operation of a trunk pipeline more than1.5 thousand kilometers long. The primary source of crude oil is from prolific fields in Western Kazakhstan with additional crude oil from Russian producers. This crude oil is transported through the CPC pipeline to the Company’s Marine Terminal in Yuzhnaya Ozereevka (Novorossiysk) where the crude oil is loaded on ocean going tankers for further delivery to the world markets. According to the Minister, 15 million tons of crude will be exported through the Atyrau – Samara oil pipeline. “This pipe is a key route; so far we don’t plan to expand it”, he said. “The Kazakhstan – China pipeline is to pump 11 million tons of crude. Plans are there to expand it to 20 million tons. Respective agreement is being prepared; from the technical perspective it won’t take long to get things done”, Mr. Mynbayev said. Railway exports of crude “stand at 7 million tons a year”. “Beyond 2020 with new production capacities available, the current transportation capacities may be insufficient; however, there is enough time to build them up (…) towards China, across the Caspian Sea or through railway routes (…) depending on commercial conditions”. “Kazakhstan is between key markets – the EU and Chine. Kazakh crude could be supplied to other markets through the Black Sea (…) as well as to Afghanistan and Uzbekistan; however, in terms of volume, the EU and China remain the major markets”, the Minister said.