The Caspian Pipeline Consortium (CPC) has marked the start of the construction phase of the $5.4-billion expansion of the Caspian pipeline. The capacity of the 900-mile (1,500-km) pipeline, which carries crude oil from western Kazakhstan to a dedicated terminal in the Black Sea, will increase to 1.4 million barrels per day from its current capacity of 730,000 barrels per day. The project will be implemented in three phases with capacity increasing progressively from 2012 to 2015.
|Caspian pipeline. Click to enlarge.|
The CPC crude pipeline system is the largest operating investment project with foreign participation on the territory of the former USSR. The cost of the first phase of construction amounted to $2.6 billion.
The project will consist of the refurbishment of the existing five pump stations, the addition of 10 new pumping stations, the replacement of a 55-mile (88-km) section of the line, six new storage tanks and the addition of a third offshore mooring point at the Black Sea terminal, six miles (10 km) north of the Port of Novorossiysk. CPC awarded all the major construction contracts in May 2011.
The first CPC groundbreaking ceremony took place 12 years ago. In October this year, CPC will celebrate 10 years of successful tanker loading. Since the start of operations, more than 2 billion barrels of oil (250 million tons) have been transported through the system.
Equity interest in the Caspian Pipeline Consortium is allocated as follows:
- Russian Federation (Transneft represents the shares of the Russian Federation and the Caspian Pipeline Company):24%
- Republic of Kazakhstan (Kazmunaigas represents the shares of the Republic of Kazakhstan and Kazakhstan Pipeline Ventures): 19%
- Chevron Caspian Pipeline Consortium Company: 15%
- LUKARCO B.V.: 12.5%
- Rosneft-Shell Caspian Ventures Limited: 7.5%
- Mobil Caspian Pipeline Company: 7.5%
- Caspian Pipeline Company: 7%
- ENI International (N.A.) N.V. S.ar.l.: 2%
- BG Overseas Holdings Limited: 2%
- Kazakhstan Pipeline Ventures L.L.C.: 1.75%
- Oryx Caspian Pipeline L.L.C.: 1.75%