Oil companies to pump 26 mm tons of oil through Caspian pipeline

Oil companies have applied to transport 26 mm tons of oil through the Caspian Pipeline Consortium pipeline in 2004, CPC General Director Ken MacDonald said at the second Russian-US energy summit in St Petersburg. He said that this amount is significantly higher than the initial capacity of the system, and noted that the pipeline will be able to pump this volume by using anti-friction additives and by modernizing pumping capacities.
The pipeline currently pumps about 1.4 mm tons of oil per month. The inclusion of the Karachaganak field will allow the CPC pipeline to reach a transportation level of about 20 mm tons of oil by the end of this year, MacDonald said. He noted that in the future CPC would have to increase the capacity of the system to satisfy the forecast requirements of shareholders, beginning in 2006.

TengizChevrOil is currently implementing a $ 30 bn investment program that will increase production by 12 mm tpy -- to about 20 mm tpy in 2007. The development of other fields, in both the Kazakh and Russian sectors, will increase demand for the CPC's oil transportation capacities from the Caspian region to 50 mm tpy and over.
The CPC chief also said that Russia plans to build connector pipes to provide additional access for oil produced in Western Siberia. He also noted that CPC has signed an agreement with KalmTEK to receive oil from Kalmykia into the system. He stressed that CPC will have to increase the system to full capacity (67 mm tons) several years earlier than the date set down in the feasibility study.

CPC plans to hold a tender in the near future to select a subcontractor to prepare project documentation for the expansion of the system to full capacity, MacDonald said. He also noted that at the moment the CPC system is able to transport over 7 mm tons of Russian oil per annum.
After its expansion the system will be able to transport about 20 mm tons of Russian oil per annum.