Caspian Pipeline Consortium (CPC) is a major international crude oil transportation project with the participation of Russia, Kazakhstan and leading international oil and gas companies , created for construction and operation of a trunk pipeline more than1.5 thousand kilometers long.
The primary source of crude oil is from prolific fields in Western Kazakhstan with additional crude oil from Russian producers. This crude oil is transported through the CPC pipeline to the Company’s Marine Terminal in Yuzhnaya Ozereevka (Novorossiysk) where the crude oil is loaded on ocean going tankers for further delivery to the world markets.
Construction of the crude pipeline system commenced on May 12, 1999. On October 13, 2001 CPC loaded its first tanker at the Marine Terminal near Novorossiysk. Deliveries via the CPC system increased annually and by 2004 CPC had achieved its initial phase full throughput capacity of 28.2 MTA. Since 2005, CPC, with the use of flow improvers, has increased its transportation volumes to capacity of 35 MTA.
But the CPC System has not reached it full maturity. Since its inception the CPC Project was developed with an expectation for increasing its initial throughput capacity by almost 2.5 times. Caspian Pipeline Consortium is currently proceeding with the Expansion of its transportation capacity up to 67 MTA/. Implementation of the Expansion Project will bring CPC to a new economic level. The revenue is expected to more than double, amounting to as much as $ 2.3 billion on an annual basis.
CPC is one of the most economic and reliable routes for crude oil transportation from the Caspian and Black Sea Region to world markets. CPC annually transports more than one third of all export crude oil from Kazakhstan, a state with a growing significance in terms of oil product deliveries to the world markets.
Production increase by Shippers is viewed as the key driver of CPC economic performance. Likewise, CPC capacity expansion means guaranteed sustainability of operations for oil producers shipping crude oil through the pipeline.