PS-3, the first of those built as a per of the Expansion Project, was commissioned in Iki-Burulsky District of Kalmykia on November 20th. The ceremony was attended by the representatives of the Shareholders and the Consortium’s top management – Nikolai Brunich, General Director, Dennis Fahy, First Deputy General Director, Andrew McGrahan, Chairman of Board, CPC-R, as well as Aleksei Orlov, Head of Republic of Kalmykia, and Igor Zotov, Chairman of the Government etc.
“Putting the new pump stations, including PS-3, in service would allow for increasing the throughput capacity by 8 million tons. It means that we will be able to move the entire volume of crude oil currently produced in Western Kazakhstan. It will also create new opportunities for chartable and social programs implementation in the regions where we operate” – said Nikolai Brunich, CPC General Director.
Andrew McGrahan, CPC-R Chairman of Board, thanked the Expansion Project team for the successful outcome of their efforts. He also praised the professionalism of the Operations personnel being so confident in handling such sophisticated equipment.
Aleksei Orlov, Head of Republic of Kalmykia, emphasized that as far as the new pump station was concerned we were talking not just new jobs, tax payments, charitable aid but also the brighter future for the local economy.
The PS-3 construction started in July 2012. In December 2014 all construction and installation work was completed to be followed by startup and commissioning activities. The comprehensive testing was successfully completed in September.
PS-3 is an interim pump station without crude oil tanks. Its key components include the mainline pumps, mud filters, Surge Relief Station, Control room, fire pump room, water treatment facilities, canteen etc.
Komsomolsk PS, which is also located in Republic of Kalmykia, was upgraded in 2014. Besides, PS-2 construction is nearing the completion with the commissioning scheduled for 2016.
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%.