CPC General Director Nikolay Brunich visited the Central Region on 30-31 May 2016 to inspect construction progress of two pump stations, PS-2 (in Kalmykia) and A-PS-4A (in the Astrakhan Region), being built under the Expansion Project.
Mr. Brunich met with contractors at pump station site to discuss and approve corrective steps to catch up on construction schedule delays. It was recommended that efforts be stepped up to accelerate the construction process so that the pump station could be mechanically-completed for oil-in in November 2016.
A-PS-4A in the Astrakhan Region was reported to the General Director to be progressing mostly on schedule. However work progress was adversely impacted by poor quality of equipment (gas turbines) supplied by a manufacturer, potentially resulting in 1 month delay from the construction schedule.
While visiting the Astrakhan Region, CPC General Director Nikolay Brunich met with Alexander Zhilkin, Astrakhan Region Governor, and Radik Kharisov, Astrakhan Region Government Deputy Chairman and Minister of Industry, Transport and Natural Resources. During the meeting the parties discussed further cooperation and tax revenues from CPC business into the regional budget.
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%.