Crude oil pump station (PS) “Atyrau” of the Caspian Pipeline Consortium system was commissioned last week, while its Tengiz PS was put into pilot operation. Thanks to a growing throughput of the CPC system, major quantities of Kazakhstan crude will be directed to the world markets. Upon completion of the Expansion Project, Kazakhstan can double crude movement via CPC.
CPC EXPANSION PROJECT PHASE I COMPLETED
Commissioning of these two upgraded facilities will add capacity to the CPC crude oil pipeline system. Atyrau PS and Tengiz PS are of special importance for Kazakhstan, as they take the bulk of crude transported via the pipeline.
"Commissioning of the Phases I, II and III facilities within the RK will enable pumping of up to 55 million tons of Kazakhstan oil and 67 million for the CPC system as a whole. With DRA, the design capacity will reach 76 million tons, thus making it possible for the oil producers to pump crude for export via the shortest route. Due to the Quality Bank, the Shippers get fair value for their oil", said CPC-K Regional Manager Sarsembay Murinov.
As it was noted by the representatives of the shareholder companies, higher throughput of the CPC system would provide shipment of Kazakhstan crude to the world markets.
The implementation of the CPC Expansion Project started four years ago. Its main purpose is to increase the throughput of Tengiz-Novorossiysk trunk oil pipeline. The Kazakhstan part includes a work scope divided into three phases. The Atyrau PS commissioning marked the completion of Phase I of the Project.
Apart from economic feasibility, the Expansion Project implementation will not only stimulate an active development of the West Kazakhstan and Caspian shelf oilfields, but will also facilitate closer integration between the two countries. Two more Project phases are pending, which include construction of power transmission lines, substations and interim crude oil pump stations. All work is scheduled to be completed by October 2016.
"The implementation of the Expansion Project of the CPC system connecting the Tengiz oilfield with the port of Novorossiysk will enable us to move up to 67-70 million tons of oil per year in the future, out of which about 55 million tons are Kazakhstan oil from the Tengiz, Karachaganak and Kashagan oilfields", informed Deputy Vice-President of ОАО "АК "Тransneft" Nikolay Savin.
"I hope that already in 2016 Kashagan crude will be actually supplied into our oil pipeline, we shall start PS-4, then PS-3, thus ensuring continuous movement of crude produced in West Kazakhstan. Devaluation of ruble and tenge creates minor difficulties, but I am sure we shall find the solution", stated CPC General Director Nikolay Brunich.
According to CPC-K Regional Manager Sarsembay Murinov, from year to year CPC increases transportation volumes. "While in 2002, when the facilities were started, the volume pumped to Marine Terminal was 11.3 million tons of oil, last year, 2014 it reached 35.2 million tons, an increase of more than 3 times. This year, we hope to move 38 million tons due to the commissioning of the Expansion Phase I facilities. Today we are commissioning Tengiz PS and Atyrau PS.
Tengiz PS costs USD 104 million, Atyrau PS costs USD 122 million, new capital construction facilities АPS-4, АPS-3 also cost USD 122-124 million each. For the Expansion implementation, the Consortium Shareholders own funds are used out of the Company annual profit. These 38 million tons of crude, which the Company hopes to move by the year end, will yield profit of USD 1.444 billion”, he said.
According to him, the regional budget will get in 2015 an aggregate of KZT 786 million, including additional KZT 612 million due to the commissioning of the two facilities. About 350 new permanent jobs will be created, 135 in CPC and about 215 with maintenance contractors. About 850 persons will have permanent employment at the CPC facilities.
Оksana Martynyuk
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