Shareholders of the Caspian Pipeline Consortium (CPC) are going to increase its capacity up to 80 million tons of crude oil per year. The project was announced by the President of Kazakhstan Kassym-Jomart Tokayev, who took part in the official event commemorating the company’s 25th anniversary.
As Tokayev noted, CPC is an impressive example of how smoothly and effectively all shareholders can work with each other.
«Since 2011 more than 750 million tons of Kazakhstani crude oil have been exported through CPC to the global market. The pipeline’s capacity has grown 2.5-fold to 67 million tons. Now, we are going to make this figure even bigger – 80 million tons by 2023,» he said.
While speaking to the audience, Kassym-Jomart Tokayev expressed his congratulations to the CPC team and shareholders on the 25th anniversary of the company. He also added that the oil and gas sector is a key driver for the entire economy of Kazakhstan.
«CPC paid off all its debts last year. It’s more proof of the sustainability of the company. Moreover, the consortium is a key element of the oil and gas industry in Kazakhstan and a big contributor to the economic development of the country and the well-being of our people. No exaggeration, CPC is a real mega project and I hope its future is promising,» said the president.
CPC’s pipeline of 1,511 kilometers in length is a sophisticated system the consortium has been using to transport Kazakhstani oil from the Tengiz field to the Novorossiysk-2 Marine Terminal on Russia’s Black Sea coast. In 2018 CPC completed an extension project at the pipeline bringing its capacity to 67 million tons per year.
CPC is a key export route for Kazakhstani oil; it accounts for 80% of all oil the country exports abroad. However, there are two alternatives as well: Atyrau-Samara pipeline to Russia and Atasu-Alashankou toward China.
Among CPC shareholders are Russia (31%), Kazakhstan (20.75%), 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%).