Caspian Pipeline Consortium

Last updated
Caspian Pipeline Consortium
Caspian-BlackSea-Tengiz-Nov.gif
Location of Caspian Pipeline Consortium
Location
Country Kazakhstan, Russia
General directioneast–west
From Tengiz field, Kazakhstan
To Novorossiysk, Russia
General information
Typeoil
Partners Transneft, Government of Kazakhstan, Chevron Caspian Pipeline Consortium Co., LukArco, Mobil Caspian Pipeline Co., Rosneft - Shell Caspian Ventures Ltd., Agip International (N.A.) N.V., Oryx Caspian Pipeline LLC, BG Overseas Holdings Ltd., Kazakhstan Pipeline Ventures LLC (KazMunayGas and BP)
OperatorCPC-R, CPC-K
Commissioned2001
Technical information
Length1,510 km (940 mi)
Maximum discharge1,400,000 barrels per day (220,000 m3/d)

The Caspian Pipeline Consortium (CPC) is a consortium and an oil pipeline to transport Caspian oil from Tengiz field to the Novorossiysk-2 Marine Terminal, an export terminal at the Russian Black Sea port of Novorossiysk. [1] It is one of the world's largest pipelines [1] and a major export route for oil from the Kashagan and Karachaganak fields. The CPC pipeline transfers about 1% of global oil supply [1] and handles almost all of Kazakhstan's oil exports. [2] In 2021, the pipeline exported up to 1.3 million barrels per day (bpd) [2] of Kazakhstan's main crude grade, light sour CPC Blend, which represented 80% of Kazakhstan's total oil production of 1.6 million bpd.

Contents

The pipeline's largest shareholders include Chevron and Exxon. [1] As of 2009, the CPC pipeline was the only oil export pipeline in Russian territory not wholly owned by Transneft. [3]

History

CPC was initially created in 1992 as a development by the Russian, Kazakhstani and Omani governments to build a dedicated pipeline from Kazakhstan to export routes in the Black Sea. Chevron Corporation was asked to join, however talks broke down due to the high financial burden Chevron would have to take on relative to equity in the pipeline. Progress on the project stalled for several years until 1996 when a restructure included eight production companies in the project. Among the companies were Chevron, Mobil, LUKoil, Royal Dutch Shell and Rosneft. BP joined the consortium in 2003. Shares were divided fifty-fifty between the three states and the eight companies. Production companies financed the construction cost of US$2.67 billion, while the Russian Federation contributed unused pipeline assets worth US$293 million. [3] [4]

In April 2007, the Russian government transferred its shares to the Russian state-owned oil pipeline company Transneft. [5] In October 2008, the Government of Oman sold its 7%-stake to Transneft at a price of $700 million and withdrew from the project. [6] On 17 December 2008, a memorandum on expanding the pipeline was signed. [7]

On October 14, 2016, crude oil from Kashagan oil field in Kazakhstan first started flowing into the Caspian Pipeline Consortium's system. [8]

On April 18, 2018, the last pump station of CPC Expansion Project - PS-2 in Kalmykia - was put into permanent operation. [9]

On May 21, 2019, the annual meeting of CPC shareholders adopted the Bottleneck Elimination Program (BEP), which provides for expansion of the Tengiz - Novorossiysk oil pipeline capacity to at least 72.5 million tons per year. [10]

Technical features

The diameter of the 1,510 kilometres (940 mi) long oil pipeline varies between 1,016 millimetres (40.0 in) and 1,067 millimetres (42.0 in). There are five pumping stations. The marine terminal includes two single point moorings and the tank farm consists of four steel storage tanks of 100,000 cubic metres (3,500,000 cu ft) each. Pipeline throughflow started at 350,000 barrels per day (56,000 m3/d) and has since increased to 700,000 barrels per day (110,000 m3/d). [4] [11]

The second stage reached a capacity of 1.4 million barrels per day (220,000 m3/d). [12] As of 2022, the pipeline throughput was about 1.2 million barrels per day (190,000 m3/d), about 1.2% of global oil demand. [13]

Operations

In 2008, CPC transported 31.5 million tons of crude, down from 32.6 million tonnes in 2007. In the first three months of 2009, the pipeline transported 8.7 million tonnes of oil. [14]

From 2001 to April 31, 2020, through the Tengiz-Novorossiysk pipeline system 662,784,671 tons of net oil were delivered to world markets. Of this amount, 582 814 809 tons is oil from Kazakhstan and 85 295 642 tons is oil produced in Russia. The total number of tankers processed during this period was 287. [15]

In March 2022, two of the three pipeline connected ship berths at the Port of Novorossiysk suffered storm damage. Repairs may take two months, with exports falling by up to 1 million barrels per day. [13]

On 6 July 2022, a Russian court ordered the suspension of the pipeline for 30 days over oil spills. The CPC appealed the ruling and the suspension was lifted on 11 July of the following week, and the CPC was instead fined 200,000 rubles (US$3,300). [1] Despite the July 6 ruling, the operator of Kazakhstan's Tengiz oil field, Tengizchevroil, said that the transfer of oil through the CPC had not been interrupted since immediate suspension of the pipeline was technically impossible and would have resulted in "irreversible consequences". [1]

The CPC pipeline handles almost all of Kazakhstan's oil exports, which makes the country oil supply routes heavily dependent on Russia. In addition, about 15% of the rest of Kazakhstan's oil exports are also transferred through Russia [2] (while about 5% is sent to China or to various other destinations over rail and the Caspian Sea [2] ). After the 6 July suspension of the pipeline, Kazakhstan's President Kassym-Jomart Tokayev ordered the government of his country's to diversify its oil supply routes.

Consortium

The Caspian Pipeline Consortium was initially registered in the Bermuda Islands in 1992. [3] It is split into two companies: CPC-R operates the Russian section of the pipeline and CPC-K operates the Kazakh section. [3]

The shareholders of the consortium are:

See also

Related Research Articles

<span class="mw-page-title-main">Baku–Tbilisi–Ceyhan pipeline</span> Oil pipeline

The Baku–Tbilisi–Ceyhan (BTC) pipeline is a 1,768 kilometres (1,099 mi) long crude oil pipeline from the Azeri–Chirag–Gunashli oil field in the Caspian Sea to the Mediterranean Sea. It connects Baku, the capital of Azerbaijan and Ceyhan, a port on the south-eastern Mediterranean coast of Turkey, via Tbilisi, the capital of Georgia. It is the second-longest oil pipeline in the former Soviet Union, after the Druzhba pipeline. The first oil that was pumped from the Baku end of the pipeline reached Ceyhan on 28 May 2006.

Tengiz field is an oil field located in Zhylyoi District, Atyrau Region, northwestern Kazakhstan.

Karachaganak Field is a gas condensate field about 23 kilometres (14 mi) east of Aksay (Ақсай) in northwest Kazakhstan. It was once a massive Permian and Carboniferous reef complex covering an area 30 by 15 square kilometres. At its largest point, the reservoir contains a gas column 1,450 metres (4,760 ft) deep with a 200 metres (660 ft) deep oil rim below it. It is estimated to contain 1.2 trillion cubic metres of gas and one billion tonnes of liquid condensate and crude oil. Discovered in 1979, it began production under Karachaganakgazprom, a subsidiary of Gazprom. In 1992, AGIP and British Gas were awarded sole negotiating rights, forming a partnership company. In 1997, Texaco and Lukoil signed a 40-year production sharing agreement with the original two companies and the Kazakhstan government to develop the field for world markets. The agreement was turned under a partnership company known as Karachaganak Petroleum Operating (KPO) where Royal Dutch Shell and ENI are joint operators with a 29.25% stake each in the company, and with Chevron and Lukoil owning 18% and 13.5% respectively. In September 2009 the KPO filed an arbitration case against Kazakhstan. The Republic of Kazakhstan appointed Maksat Idenov to lead the negotiations, after which the arbitration was suspended towards an amicable settlement of the dispute and KazMunayGas engaged in entrance into the project in 2010. Under the terms of an agreement reached on December 14, 2011, the Republic of Kazakhstan has acquired through KazMunayGas a 10% stake for $2 billion cash and $1 billion non-cash consideration.

Kashagan Field is an offshore oil field in Kazakhstan's zone of the Caspian Sea. The field, discovered in 2000, is located in the northern part of the Caspian Sea close to Atyrau and is considered the world's largest discovery in the last 30 years, combined with the Tengiz Field. When discovered, it was the second largest oil field in the world.

<span class="mw-page-title-main">Samsun–Ceyhan pipeline</span> Planned Turkish oil transporter

The Ünye–Ceyhan pipeline, commonly known with its former name, the Samsun–Ceyhan pipeline, was a planned crude oil pipeline traversing Turkey from the Black Sea to the Mediterranean oil terminal in Ceyhan. The aim of the project was to provide an alternative route for Russian and Kazakhstani oil and to ease the traffic burden in the Bosporus and the Dardanelles. The project was halted in 2010. This was confirmed again in 2013.

Azeri–Chirag–Gunashli or Azeri–Chirag–Deepwater Gunashli is a complex of oil fields in the Caspian Sea, about 120 kilometres (75 mi) off the coast of Azerbaijan. It consists of the Azeri and Chirag oil fields, and the deepwater portion of the Gunashli oil field. An overall estimate of the area of the development is 432.4 square kilometres (167.0 sq mi). It is developed by the Azerbaijan International Operating Company, a consortium of international oil companies, and operated by BP on behalf of the consortium. The ACG fields have estimated recoverable reserves of about 5 to 6 billion barrels of petroleum. Peak oil production of 835,000 barrels per day (132,800 m3/d) was reached in 2010, however by the first quarter of 2022 production had declined to 434,000 barrels per day (69,000 m3/d), or about one-half of peak value. As of 2021, ACG oil accounted for 95% of all Azerbaijani oil exports.

The Trans-Caspian Oil Transport System is a proposed project to transport oil through the Caspian Sea from Kazakhstani Caspian oilfields to Baku in Azerbaijan for the further transportation to the Mediterranean or Black Sea coast. The main options under consideration are an offshore oil pipeline from Kazakhstan to Azerbaijan, and construction of oil terminals and oil tankers fleet. A strong push for the project has been from the partners of the Kashagan oilfield project and in particular Total who has a share in both the field and the BTC pipeline. They have estimated that such a project would cost roughly US$4 billion. The project also faces opposition from Iran and Russia, both alternative avenues for Kazakhstan's oil and gas who would likely object to competing pipelines being built.

The Kazakhstan–China oil pipeline is China's first direct oil import pipeline allowing oil import from Central Asia. It runs from Kazakhstan's Caspian shore to Xinjiang in China. The pipeline is owned by the China National Petroleum Corporation and the Kazakh oil company KazMunayGas.

The Eastern Siberia–Pacific Ocean oil pipeline is a pipeline system for exporting Russian crude oil to the Asia-Pacific markets. The pipeline is built and operated by Russian pipeline company Transneft.

<span class="mw-page-title-main">Petroleum industry in Russia</span> One of the largest in the world

The Petroleum or oil industry in Russia is one of the largest in the world. Russia has the largest reserves and was the largest exporter of natural gas. It has the sixth largest oil reserves, and is one of the largest producers of oil. It is the fourth largest energy user.

Energy in Kazakhstan describes energy and electricity production, consumption and import in Kazakhstan and the politics of Kazakhstan related to energy.

<span class="mw-page-title-main">Sangachal Terminal</span> Azerbaijani natural gas and oil plant

The Sangachal Terminal is an industrial complex consisting of a natural gas processing plant and oil production plant, located on the coast of the Caspian Sea 45 kilometres (28 mi) south of Baku, Azerbaijan.

<span class="mw-page-title-main">Baku–Supsa Pipeline</span> Oil pipeline from Azerbaijan to Turkey

The Baku–Supsa Pipeline is an 833-kilometre (518 mi) long oil pipeline, which runs from the Sangachal Terminal near Baku to the Supsa terminal in Georgia. It transports oil from the Azeri-Chirag-Guneshli field. The pipeline is operated by BP.

<span class="mw-page-title-main">Baku–Novorossiysk pipeline</span> Azerbaijan-Russia gas transporter

The Baku–Novorossiysk pipeline is an 1,330-kilometre (830 mi) long oil pipeline, which runs from the Sangachal Terminal near Baku to the Novorossiysk terminal at the Black Sea coast in Russia. The Azerbaijani section of the pipeline is operated by the State Oil Company of Azerbaijan Republic (SOCAR) and the Russian section is operated by Transneft.

The Baku–Batumi pipeline is the name given to several pipelines and pipeline projects to transport kerosene and crude oil from the Caspian region to the Georgian Batumi oil terminal at the Black Sea. When first constructed in 1906, it was the world's longest kerosene pipeline.

Sources include: Dow Jones (DJ), New York Times (NYT), Wall Street Journal (WSJ), and the Washington Post (WP).

The Vankor Field is an oil and gas field in Russia, located 130 kilometres (81 mi) west of Igarka in the Turukhansk District of Krasnoyarsk Krai in Eastern Siberia, close to the border with Yamalo-Nenets Autonomous Okrug. Its estimated reserves are 520 million metric tons of oil and 95 billion cubic meters of natural gas. Production was launched in August, 2009. The field is operated by Russian national oil company Rosneft through its subsidiary Vankorneft.

<span class="mw-page-title-main">Port of Novorossiysk</span> Largest port in Krasnodar Krai, from Russia

Novorossiysk Sea Port is one of the largest ports in the Black Sea basin and the largest in Krasnodar Krai. At 8.3 km, the NSP berthing line is the longest among all the ports of Russia. The port is located on the Northeast coast of the Black Sea, in the Tsemes Bay. The bay is ice-free and open for navigation all year round. However, in winter the navigation occasionally stops due to the hazardous northeastern bora wind. The Tsemes Bay allows deep-draft vessels up to 19 m, and the inner harbour up to 12.5 m. The liquid bulk terminals depth range from 8.4 to 15.6 m, suitable for tankers with a deadweight of up to 250,000 tons, like Suezmax-class vessels.

References

  1. 1 2 3 4 5 6 "Russian court lifts suspension for Caspian pipeline operations". Reuters. 11 July 2022. Retrieved 11 July 2022.
  2. 1 2 3 4 Valle, Sabrina; Bousso, Ron (11 July 2022). "Analysis: Oil majors face output slump, deep losses if Russia stops Kazakh pipeline". Reuters . Retrieved 11 July 2022.
  3. 1 2 3 4 Dellecker, Adrian (June 2008). "Caspian Pipeline Consortium, Bellwether of Russia's Investment Climate? Russie.Nei.visions no.31" (PDF). IFRI. Archived from the original (PDF) on 2008-12-07. Retrieved 2008-07-07.
  4. 1 2 "Caspian Pipeline Consortium — a new global energy supplier" (PDF). Caspian Pipeline Consortium. Archived from the original (PDF) on 2007-08-09. Retrieved 2008-11-22.
  5. ↑ "Transneft takes CPC bite". Upstream Online . NHST Media Group. 2007-04-29. Retrieved 2008-07-07.
  6. ↑ "Russia snaps up Oman CPC stake". Upstream Online . NHST Media Group. 2008-11-06. Retrieved 2008-11-09.
  7. ↑ "CPC Shareholders Sign Expansion Deal". Downstream Today. 2008-12-17. Retrieved 2008-12-25.
  8. ↑ "First Kashagan Oil is in CPC Pipeline System". CPC.
  9. ↑ "The Last CPC Expansion Project Facility Commissioned in Kalmykia". CPC. Archived from the original on 2018-04-23.
  10. ↑ "Annual Meeting of CPC Corporate Governance Bodies". CPC. Archived from the original on 2019-05-26.
  11. ↑ "CPC Project Basic Features". Caspian Pipeline Consortium. Archived from the original on 2008-12-21. Retrieved 2008-11-22.
  12. ↑ "Kazakhstan's Tengiz oil field operator says resuming normal output after protests". S&P Global Commodity Insights. 2022-01-09. Retrieved 2022-03-23.
  13. 1 2 "Russia warns of sharp Caspian pipeline oil export drop after storm" . Reuters. 22 March 2022. Retrieved 23 March 2022.
  14. ↑ "CPC pipeline exports up in 2009". Silk Road Intelligencer. 2009-04-06. Archived from the original on 2010-08-11. Retrieved 2009-04-06.
  15. ↑ "CPC Marine Terminal April shipments". CPC. Archived from the original on 2020-05-09.
This page is based on this Wikipedia article
Text is available under the CC BY-SA 4.0 license; additional terms may apply.
Images, videos and audio are available under their respective licenses.