24 September 2015 the Marine Terminal of Caspian Pipeline Consortium (CPC) near Novorossiysk hosted a ceremony to mark the completion of construction of three new tanks and comprehensive testing of the facilities with oil in.
The CPC crude oil Tank Farm has been increased from four to seven steel vertical floating roof tanks with the capacity of 100,000 tons each. The ceremony was attended by the Consortium Shareholders and the Company’s senior management including the Company’s CEO Nikolay Brunich. The Administration of Novorossiysk was represented by Vladimir Sinyagovski, Head of Novorossiysk Municipality.
“Gladly and proudly I am opening this ceremony dedicated to completion of the construction and commissioning of the three 100,000 t tanks in our facility. Everything is possible when all the employees are targeted to the result. Especially on this final stage I could see our employees strong desire to complete the work on time and with due quality not affecting the requirements of the occupational and industrial safety and environmental laws”, Mr. Brunich said.
The construction work to expand the Tank Farm under the Expansion Project started in 2011. At the moment three more steel giants are under construction. Eventually, the total capacity of all tanks will make 1 million cubic meters.
In 2014, the third single point mooring (SPM-3) was commissioned as part of the Expansion Project
The gradual growth of the Tank Farm capacity will allow us to increase the volume of crude oil handling through CPC Marine Terminal to 67 million tons after completion of the Expansion Project and with drag reduction agents this volume will grow to 76 million tons.
“Indeed, today is a very important day. Even before the Expansion Project CPC was a significant world level organization in the oil and gas industry. And now we have made another very important step towards the final result. It is important for the global energy security”, Andrew McGrahan, Chairman of CPC-R Board of Directors, President of Chevron Neftegaz, Inc. said in speech.
The Head of Novorossiysk Municipality congratulated all employees of the Consortium with the new business achievements and he emphasized that CPC is a socially responsible company which gives very serious attention to development of the municipal infrastructure.
Being a multinational joint venture, CPC strictly observes the law requirements in the area of occupational and industrial safety and environment protection. In its business the company uses the best world practices and experience of the western companies.
“I am sure, there never will be any problems with ecological or industrial safety in CPC sites. We even brought here our civil construction workers involved in building of the urban facilities, to show them how the work should be done using the example of your engineers and construction specialists who demonstrate high standards in the area of construction and safety at your sites”, Mr. Sinyagovski said.
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%.