On August 3, 2016 Nikolay Gorban, General Director of Caspian Pipeline Consortium, travelled for the Company to Astana where he had a meeting with Nurtas Shmanov, KazTransOil General Director. The negotiations were also attended by Timur Rakhanov, CPC-K Board of Directors Chairman, Kazakhstan Pipeline Ventures General Director, CPC-K Executive Director Mellyat Karabalin and CPC-R Consultant Alibek Zhilbayev.
During the meeting the parties discussed the matters related to Caspian Pipeline Consortium operation in Kazakhstan, including the progress of construction of two pump stations being built as part of the Expansion Project – А-PS-3А and А-PS-4 and their commissioning dates.
The construction of the intermediate А-PS-3А is part of CPC Expansion Project Phase three. The station is expected to be put into operation early next year.
Construction of А-PS-4 is CPC Expansion Project Phase two. It is planned to commission the facility in Quarter IV of 2016 after comprehensive testing.
It was pointed out that the parties concerned were undertaking all necessary actions for timely commissioning of the aforesaid pump stations and increasing of the CPC crude pipeline system throughput capacity.
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%.