October 07, 2008

Caspian Pipe to be expanded by 2012

RIA Novosti reported that Russia and Kazakhstan have agreed to double the capacity of the Caspian Pipeline Consortium by 2012. The decision was agreed during a visit to the ex Soviet republic by Mr Viktor Khristenko industry and energy minister on May 6 and 7.

The minister said that "The expansion should take place in two stages by 2012. As a result the pipeline's capacity will be increased from 32 million to 67 million tonnes of oil.”

The ministry added that the parties also agreed to supply an extra 17 million tonne of Kazakh oil through the Burgas to Alexandroupolis pipeline. The trans Balkan oil pipeline, being built by Russia, Bulgaria, and Greece, will pump 35 million tonnes of oil a year a volume that could eventually be increased to 50 million tonnes.

The Caspian Pipeline Consortium is designed to carry Kazakh and Russian crude to a terminal on the Black Sea, was commissioned in October 2001. Its capacity currently stands at around 30 million tonnes of oil a year.

Chevron is the largest corporate owner of the Caspian Pipeline Consortium with a 15% stake. Russia, the single largest shareholder in the project with 24% has withheld approval for the link's expansion in a dispute over transportation prices. The government of Kazakhstan owns 19%.