A notice was sent to CPC Shareholders on 31 December 2022 that under the implementation of the Debottlenecking Program (DBNP) all facilities at Tengiz PS and Astrakhan PS had been fully completed and put into operation, these facilities having impact on the CPC pipeline systems’ ability of accepting additional crude volumes from Tengiz field in the Republic of Kazakhstan for transportation.
Hence, CPC completed the main task of the DBNP on time and in full - ensure mechanical readiness for throughput volume increase before the end of 2022. As stipulated in the Final Investment Decision, the Consortium's pipeline system can transport approximately 72.5 mln tons of oil per year from Kazakhstan territory and up to 83 mln tons of oil per year via the Russian Federation.
The DBNP implementation helps to ensure the flexibility of the injection point functioning and possibility of transporting additional crude volumes with optimal drag reducing agent and higher crude pipeline operation factors.
As a reminder: the resolution to implement the DBNP was approved at the Annual CPC Shareholders Meeting in May 2019 in Baku. The Debottlenecking Program is a number of individual projects integrated into a single program and implemented in the Russian Federation and Republic of Kazakhstan, the objective of the Program being to optimize the CPC crude pipeline system’ existing capacities. The DBNP also includes a number of projects aimed at enhancement of the CPC pipeline system reliability level after the increase of the throughput volumes.
The Debottlenecking Program is a logical continuation of the CPC Expansion Project completed with success in 2018. The DBNP implementation makes it possible to meet all Shippers’ nominations while keeping high standards of CPC pipeline system operation safety and reliability.
Mechanical readiness of CPC crude pipeline system in December 2022 was implemented through successful commissioning of new mainline pumps, booster pump house with variable frequency drives, drainage tanks site and expansion of the existing crude oil quantity and quality measurement system at Tengiz PS. At the same time, to ensure possibility of pumping increased crude volumes, construction and commissioning of a new mainline pump building with variable frequency drives and a set of auxiliary facilities were completed at Astrakhan PS in full and ahead of schedule.
Despite the fact that provision of CPC mechanical capacity was specifically the DBNP key task, essential results were achieved also in other Program projects aimed at improvement of efficiency and reliability of oil movement. Thus, new mainline pump units with gas turbines were installed and put into operation at Komsomolskaya PS and APS-4A. A similar project at Atyrau PS in the Republic of Kazakhstan is at its final stage: start-up and commissioning work is being completed and a new mainline pump unit with a gas turbine is being prepared for operation in January 2023. Frequency converters for mainline pump electric drives were put into operation with success at PS-2 and APS-5A. By December 2022, high (at the level of 86%) readiness of new oil quantity and quality measurement systems at CPC Marine Terminal Shore Facilities was ensured.
In 2023, the DBNP scope of work in CPC will be carried out in accordance with the Program implementation schedule. Construction of two new tanks of 20,000 cu. m each and new external electric power facilities will continue at Tengiz PS in the Republic of Kazakhstan. Work at the Marine Terminal Shore Facilities will continue in the Russian Federation. Construction of frequency converters for the existing mainline pump electric drives is planned to commence at PS-3, PS-4 and PS-5.
In 2023, CPC also plans to proceed to dismantling equipment that is to be taken out of operation.
The CPC Pipeline System is one of CIS largest energy investment projects that involves foreign capital. The length of the Tengiz – Novorossiysk pipeline is 1,511 km. This route moves over two thirds of all Kazakhstan export oil along with crude from Russian fields including those in the Caspian region. CPC Marine Terminal is equipped with three Single Point Moorings (SPM), allowing tankers to be loaded safely at significant distance offshore, including in poor weather conditions
CPC Shareholders: Federal Agency for State Property Management represented by Transneft (trustee) – 24%, CPC Company – 7%, KazMunayGas – 19%; Kazakhstan Pipeline Ventures LLC – 1.75%, 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%, and Oryx Caspian Pipeline LLC – 1.75%.