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Caspian Pipeline Consortium to expand pipeline capacity

Oilfield Technology,

The Caspian Pipeline Consortium has passed a final investment decision to expand the pipeline’s mechanical capacity to 67 million tpa. The project is expected to be completed in 2014, at a cost of US$ 5.4 billion.

Upon completion of the document signing ceremony the Russian Minister of Energy stated that, “The Russian and Kazakhstan producing companies would be able to get the full price for their crude and save on the transportation cost as compared to the alternative export routes. I would like to stress the importance of this project for the economy of these two countries. It will give a new spin to the co-operation between Russia and Kazakhstan in the field of energy.”

Kazakhstan already allowed China National Petroleum Corp to build a pipeline to China in 2007 as a means of diversifying and increasing its oil export routes.

The pipeline expansion is urgently needed as the oilfields that supply it are undergoing expansion and Kazakhstan urgently needs extra capacity for its oil exports. The Tengiz oil field, operated by Chevron, has seen production rise to 540,000 bpd, but further expansion was curtailed until this final investment decision was made.

CPC Expansion Project that envisages expansion of the pipeline throughput to 67 million tpa includes construction of 10 additional pump stations (2 in Kazakhstan and 8 in the Russian Federation), six crude oil tanks in the vicinity of Novorossiysk and a third single point mooring at CPC Marine Terminal, as well as replacement of an 88 km pipeline section in Kazakhstan.

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