CPC guarantees efficient and environmentally safe movement of crude oil

The Project is designed to increase the trunk pipeline capacity

CPC: TRUE PARTNERSHIP IN ACTION

IN 2017 CASPIAN PIPELINE CONSORTIUM CELEBRATES ITS 25TH ANNIVERSARY
SUSTAINABLE DEVELOPMENT
The first idea of CPC project was glimpsed 1987, when the Soviet Government took the decision to bring the Chevron Corporation to develop the Tengiz oil field in Kazakhstan. At that point it was absolutely clear for all the participants of the negotiations that a new export pipeline system would need to be constructed for crude oil transportation to the international markets. Towards this ends in 17 June 1992, a framework agreement was signed between the Republic of Kazakhstan and the Sultanate of Oman on the establishment of Caspian pipeline consortium. A month later, on 23 July 1992, with the accession of Russia began the history of the Caspian Pipeline Consortium.
Four years later the project was joined by eight private shareholders, representing the interests of the world's largest producer companies from seven countries. The participation of world leading oil and gas companies in the CPC project has not only provided funding for the project, but also gave the opportunity to apply modern technologies and equipment, international standards of management, design, construction and operation of pipeline transportation facilities.
The construction of a 1,500-kilometer Tengiz – Novorossiysk oil pipeline began on 17 November 1999: on this day in Stavropol and Krasnodar regions the first pipes were laid in trench. On 22 November 2000 Marine Terminal Tank Farm saw "Golden weld" ceremony, marking the completion of the pipeline construction. On November 28th the construction single point moorings was finalized at Marine Terminal.
CPC pipeline system operation began on 13 October 2001. Ever since Consortium has rapidly and steadily developed and by mid-2004 reached the Stage 1 designed throughput capacity of 28.2 million tons. Since 2005, CPC, with the help of DRA, has been increasing the of transportation volume, which in 2010 reached 35 million tons per year.
UPGRADE AND EXPANSION
In 2011, CPC has launched Expansion Project that provided for doubling the throughput capacity up to 67 million tons per year. 18 contractors mobilized simultaneously at 22 construction sites. Contractors were charged with an ambitious task: replace 88 km of pipeline, upgrade five existing pump stations, build six additional oil 100,000-m3 storage tanks and the third SPM at CPC Marine terminal, and construct ten new pump stations on in Russia and Kazakhstan.
CPC has provided general supervision of Expansion Project activities, while interaction with the construction contractors was given to three management companies on behalf of major shareholders – subsidiaries of Transneft, KazMunayGas and Chevron. The first two took over the management of construction projects in Russia and Kazakhstan, and Chevron began construction of additional tanks at the Marine terminal, the entire marine part and the modernization of communication and data transmission, including the SCADA system.
In April 2014 the first stage CPC Expansion Project in Russia was successfully completed. The new equipment installed at Astrakhan, Komsomolsk and Kropotkin PSs were put in service. In September 2015 all Expansion Project sites in Kazakhstan at Atyrau PS and Tengiz PS were commissioned. By the end of 2015 the total of 19 Expansion Project sites was commissioned: 16 in Russia and 3 in Kazakhstan.
AN EXAMPLE OF SUCCESSFUL COOPERATION
Currently CPC is in process of finalizing Stage 2 and 3 of the Expansion Project. In Kazakhstan A-PS-4 was put in operation in October 2016 thus increasing the capacity of the CPC pipeline system in terms of crude oil deliveries from Kashagan field. The construction of another pump station A-PS-3A was completed with the commissioning scheduled for the second half of 2017.
The Russian PSs have been commissioned gradually as well. A-PS-4A and A-PS-5A in Astrakhan oblast are to be commissioned in the first half of 2017, which would help increase the throughout capacity to 52.5 million tons. Next in line for commissioning are PS-8 in Krasnodar Krai and PS-5 in Stavropol Krai with PS-2 being the last Russian PS to be put in services as a part of the Expansion Project. This station is located in Republic of Kalmykia and is the most remote site of the Consortium.
Once Expansion Project is finalized in 2017 Tengiz - Novorossiysk pipeline will become one of the largest in the world, which that is a true testimony to the fact that neither high turbulence on international markets nor financial crisis can get in a way of a real partnership.
TSR, November 25, 2016