Kazakhstan oil majors weigh Caspian pipeline to bypass Russia, Nikkei reports
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Kazakhstan's largest oil companies are studying options to expand oil exports bypassing Russia via the Trans-Caspian route, Nikkei Asia reports. The options include building an underwater pipeline across the Caspian Sea or significantly expanding the tanker fleet. The move follows repeated suspensions of the CPC pipeline this year after Ukrainian drone attacks on its terminal and tankers.
Key Facts
- More than 80% of Kazakhstan's oil exports flow through the Caspian Pipeline Consortium (CPC), which crosses Russia to the Black Sea.
- The alternative Trans-Caspian route currently carries about 1.2 million tonnes of oil per year, less than 2% of CPC volumes, according to Kazakhstan's Energy Ministry.
- Kazakh companies are preparing a feasibility study for expanding the Trans-Caspian route, with options including an underwater pipeline or expanded tanker fleet capable of up to 35 million tonnes per year.
- CPC operations were suspended several times in July after drone attacks on its marine terminal, forcing Kazakhstan to temporarily cut oil production.
- Kazakhstan's Foreign Ministry called the attacks on CPC vessels an encroachment on the country's interests and said it reserves the right to demand compensation.
Trans-Caspian Route Expansion
Kazakhstan's largest oil companies are studying options to expand oil exports bypassing Russia via the Trans-Caspian route, Nikkei Asia reports. The options include building an underwater pipeline across the Caspian Sea or significantly expanding the tanker fleet. The route starts at the Atyrau oil hub, moves oil to the port of Aktau, crosses the Caspian Sea to Baku, and then uses existing infrastructure through Tbilisi to Turkey's Ceyhan. Kazakh companies are currently preparing a feasibility study for the possible expansion of this route. A source told Nikkei Asia that both the underwater pipeline and the expanded tanker fleet could provide total capacity of up to 35 million tonnes of oil per year, more than half of what Kazakhstan currently transports through CPC.
CPC Disruptions and Response
More than 80% of Kazakhstan's oil exports flow through the Caspian Pipeline Consortium (CPC), which crosses Russia to the Black Sea. This year, the route's operation was suspended several times due to Ukrainian drone attacks on the CPC terminal and oil tankers. In July, the CPC marine terminal suspended operations several times after drone attacks, and Kazakhstan temporarily reduced oil production due to the inability to export crude. Kazakhstan later redirected part of its exports through alternative routes, including increased supplies to China. Kazakhstan's Foreign Ministry called the attacks on CPC vessels an encroachment on the country's interests and said the republic is assessing the damage and reserves the right to demand compensation.
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