A meeting of the Working Group on the Expansion Project Implementation issues was conducted on August 17, 2016 in the office of PS-2 of Caspian Pipeline Consortium in the Republic of Kalmykia. CPC General Director Nikolay Gorban, Igor Zotov, Chairman of the Republic of Kalmykia Government, Mikhail Grishankov, CPC Deputy General Director, Russian Federation Government Relations, Mikhail Kolesnikov, Manager, Regulatory Affairs, CPC-R, representatives of government services and agencies of the Republic of Kalmykia, CPC and contractors’ specialists took part in the meeting chaired by Alexey Orlov, Head of the Republic of Kalmykia.
The matters related to commissioning of interim PS-2 of CPC-R crude pipeline system located near Achynery, Chernozemelsky District, Republic of Kalmykia, were discussed at the meeting. It was pointed out that the PS station construction readiness was 90%, camp construction readiness was also 90%. The commissioning of the Pump Station was scheduled for Quarter II of 2017.
There are two more Pump Stations of CPC System in operation in the Republic of Kalmykia – Komsomolskaya PS in Chernozemelsky District reconstructed as part of the Expansion Project, and new PS-3 in Iki-Burulsky District commissioned in November 2015.
In the course of the discussion of PS-2 construction particular attention was paid to ensuring security of CPC trunk pipeline.
The matters pertaining to the current social projects being implemented as part of CPC Expansion Project charity program in Iki-Burulsky and Chernozemelsky Districts of the Republic were also reviewed at the meeting – reconstruction of SOSh No.1, elementary school building in Komsomolsky settlement, construction of a building of SOSh No.2 for elementary school in Artesian settlement and a Center for children extended education in Iki-Burul settlement. Achinery villagers know firsthand about the pipeline specialists’ good deeds as in their settlement a kindergarten for 55 children appeared thanks to CPC.
In the course of the meeting Nikolay Gorban noted: “CPC is a corporate citizen that is why we treat very seriously the strengthening and development of our cooperation with Kalmykia. We hope that the charity program which the Consortium implements by both its Base Business and the Expansion Project will contribute to development of the region social sphere”.
“We guarantee the possibility of the Consortium’s efficient operation in the Republic Kalmykia, - underlined Alexey Orlov. – I am grateful for great contribution to development of the Republic’s social sphere which the Company has been making since the first years of its operation in Kalmykia”.
Caspian Pipeline Consortium pays particular attention to implementation of social programs in the regions of its presence. Thus, over the entire period of cooperation between CPC and the Republic of Kalmykia the Company has allocated over 400 Million Rubles to the Region’s social needs.
On a regular basis the Consortium funds traditional charity programs (“CPC to first-year schoolchildren”, “CPC to talented children”, etc.), allocates funds to provision of equipment, furniture and transport to the Republican health care, educational and sports establishments.
For reference.
CPC pipeline system is one of the largest investment projects in the energy industry with participation of foreign capital on the CIS territory. The length of the pipeline connecting the oil fields in Western Kazakhstan with the Marine Terminal near Novorossiysk is 1,511 km. CPC Marine Terminal is equipped with single point moorings which allow for safe tanker lifting at a considerable distance from the shore, also when the weather conditions are unfavorable.
The Expansion Project includes rehabilitation of 5 existing and construction of 10 additional pump stations (2 in the Republic of Kazakhstan and 8 in the Russian Federation), six new storage tanks (100,000 cu.m each) in addition to the existing four near Novorossiysk and a third SPM at the CPC Marine Terminal, and also the replacement of an 88 km pipeline section in Kazakhstan with a larger diameter pipe. The total amount of the Project investments will be US$ 5.4 billion.
CPC Shareholders: Russian Federation (represented by Transneft – 24% and CPC Company – 7 %) – 31%; Republic of Kazakhstan (represented by KazMunayGaz – 19% and Kazakhstan Pipeline Ventures LLC – 1.75%) – 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% и Oryx Caspian Pipeline LLC – 1.75%.