Caspian Pipeline Consortium
{{Short description|Russia-Kazakhstan Oil Pipeline}}
{{Infobox pipeline
|name = Caspian Pipeline Consortium
|type = oil
|map = Caspian-BlackSea-Tengiz-Nov.gif
|map_caption = Location of Caspian Pipeline Consortium
|country = Kazakhstan, Russia
|coordinates =
|photo =
|caption =
|operator = CPC-R, CPC-K
|partners = Transneft, Government of Kazakhstan, Chevron Caspian Pipeline Consortium Co., LukArco, Mobil Caspian Pipeline Co., Rosneft - Shell Caspian Ventures Ltd., Agip International (N.A.) N.V., Oryx Caspian Pipeline LLC, BG Overseas Holdings Ltd., Kazakhstan Pipeline Ventures LLC (KazMunayGas and BP)
|length_km = 1510
|discharge = {{convert|1,400,000|oilbbl/d}}
|direction = east–west
|start = Tengiz field, Kazakhstan
|finish = Novorossiysk, Russia
|est = 2001
|through =
|par =
}}
The Caspian Pipeline Consortium (CPC) is a consortium and an oil pipeline that transports Caspian oil from the Tengiz oil field in Kazakhstan to the Novorossiysk-2 Marine Terminal, an export terminal at the Russian Black Sea port of Novorossiysk.{{cite news|title=Russian court lifts suspension for Caspian pipeline operations|date=11 July 2022 |publisher=Reuters |url=https://www.reuters.com/business/energy/caspian-pipeline-fined-russia-suspension-lifted-2022-07-11/|accessdate=11 July 2022}} It is one of the world's largest pipelines and a major export route for oil from the Kashagan and Karachaganak fields.
The CPC pipeline transfers about 1% of global oil supply and handles almost all of Kazakhstan's oil exports.{{cite news|last1=Valle|first1=Sabrina|last2=Bousso|first2=Ron|title=Analysis: Oil majors face output slump, deep losses if Russia stops Kazakh pipeline|date=11 July 2022|publisher=Reuters|url=https://www.reuters.com/business/energy/oil-majors-face-output-slump-deep-losses-if-russia-stops-kazakh-pipeline-2022-07-11/|accessdate=11 July 2022}}
In 2021, the pipeline exported up to 1.3 million barrels per day (bpd) of Kazakhstan's main crude grade, light sour CPC Blend, which represented 80% of Kazakhstan's total oil production of 1.6 million bpd.
The pipeline's largest shareholders include Chevron and Exxon.
{{As of|2009}}, the CPC pipeline was the only oil export pipeline in Russian territory not wholly owned by Transneft.
{{cite web|first=Adrian|last=Dellecker|title=Caspian Pipeline Consortium, Bellwether of Russia's Investment Climate? Russie.Nei.visions no.31|date=June 2008|publisher=IFRI|url=http://www.ifri.org/files/Russie/ifri_RNV_Dellecker_CPC_ENG_juin2008.pdf|accessdate=2008-07-07|url-status=dead|archiveurl=https://web.archive.org/web/20081207213449/http://www.ifri.org/files/Russie/ifri_RNV_Dellecker_CPC_ENG_juin2008.pdf|archivedate=2008-12-07}}
History
CPC was initially created in 1992 as a development by the Russian, Kazakhstani and Omani governments to build a dedicated pipeline from Kazakhstan to export routes in the Black Sea. Chevron Corporation was asked to join, however talks broke down due to the high financial burden Chevron would have to take on relative to equity in the pipeline. Progress on the project stalled for several years until 1996 when a restructure included eight production companies in the project. Among the companies were Chevron, Mobil, LUKoil, Royal Dutch Shell and Rosneft. BP joined the consortium in 2003. Shares were divided fifty-fifty between the three states and the eight companies. Production companies financed the construction cost of US$2.67 billion, while the Russian Federation contributed unused pipeline assets worth US$293 million.{{cite web
|title=Caspian Pipeline Consortium — a new global energy supplier
|publisher=Caspian Pipeline Consortium
|url=http://www.cpc.ru/_press/documents/cpc_a4_0303_en.pdf
|accessdate=2008-11-22
|url-status=dead
|archiveurl=https://web.archive.org/web/20070809203256/http://www.cpc.ru/_press/documents/cpc_a4_0303_en.pdf
|archivedate=2007-08-09}}
In April 2007, the Russian government transferred its shares to the Russian state-owned oil pipeline company Transneft.{{cite news
|title=Transneft takes CPC bite
|date=2007-04-29
|newspaper=Upstream Online
|publisher=NHST Media Group
|url=http://www.upstreamonline.com/incoming/article132389.ece
|accessdate=2008-07-07}}
In October 2008, the Government of Oman sold its 7%-stake to Transneft at a price of $700 million and withdrew from the project.{{cite news
|title=Russia snaps up Oman CPC stake
|date=2008-11-06
|newspaper=Upstream Online
|publisher=NHST Media Group
|url=http://www.upstreamonline.com/live/article166026.ece
|accessdate=2008-11-09}}
On 17 December 2008, a memorandum on expanding the pipeline was signed.{{cite news
|date=2008-12-17
|title=CPC Shareholders Sign Expansion Deal
|publisher=Downstream Today
|url=http://www.downstreamtoday.com/News/Articles/200812/CPC_Shareholders_Sign_Expansion_Deal_14288.aspx
|accessdate=2008-12-25}}
On October 14, 2016, crude oil from Kashagan oil field in Kazakhstan first started flowing into the Caspian Pipeline Consortium's system.{{Cite web|last=|first=|date=|title=First Kashagan Oil is in CPC Pipeline System|url=http://www.cpc.ru/EN/press/releases/2016/Pages/20161017.aspx|archive-url=|archive-date=|access-date=|website=CPC}}
On April 18, 2018, the last pump station of CPC Expansion Project, PS-2 in Kalmykia, was put into permanent operation.{{Cite web|last=|first=|date=|title=The Last CPC Expansion Project Facility Commissioned in Kalmykia |url=http://www.cpc.ru/EN/press/releases/2018/Pages/20180418_2.aspx |url-status=live|archive-url=https://web.archive.org/web/20180423165510/http://www.cpc.ru:80/EN/press/releases/2018/Pages/20180418_2.aspx |archive-date=2018-04-23 |access-date=|website=CPC}}
On May 21, 2019, the annual meeting of CPC shareholders adopted the Bottleneck Elimination Program (BEP), which provides for expansion of the Tengiz - Novorossiysk oil pipeline capacity to at least 72.5 million tons per year.{{Cite web|last=|first=|date=|title=Annual Meeting of CPC Corporate Governance Bodies|url=http://www.cpc.ru/EN/press/releases/2019/Pages/20190522.aspx|url-status=live|archive-url=https://web.archive.org/web/20190526050759/http://www.cpc.ru:80/EN/press/releases/2019/Pages/20190522.aspx |archive-date=2019-05-26 |access-date=|website=CPC}}
Technical features
The diameter of the {{convert|1510|km|mi}} long oil pipeline varies between {{convert|1016|mm|in}} and {{convert|1067|mm|in}}. There are five pumping stations. The marine terminal includes two single point moorings and the tank farm consists of four steel storage tanks of {{convert|100000|m3}} each. Pipeline throughflow started at {{convert|350000|oilbbl/d}} and has since increased to {{convert|700000|oilbbl/d}}.{{cite web
|title=CPC Project Basic Features
|publisher=Caspian Pipeline Consortium
|url=http://www.cpc.ru/portal/alias!press/lang!en-US/tabID!3444/DesktopDefault.aspx
|accessdate=2008-11-22
|url-status=dead
|archiveurl=https://web.archive.org/web/20081221050413/http://www.cpc.ru/portal/alias%21press/lang%21en-US/tabID%213444/DesktopDefault.aspx
|archivedate=2008-12-21}}
The second stage reached a capacity of {{convert|1.4|Moilbbl/d|m3/d}}.{{cite news
|date=2022-01-09
|title=Kazakhstan's Tengiz oil field operator says resuming normal output after protests
|publisher=S&P Global Commodity Insights
|url=https://www.spglobal.com/commodity-insights/en/market-insights/latest-news/oil/010922-kazakhstans-tengiz-oil-field-operator-says-resuming-normal-output-after-protests
|accessdate=2022-03-23}}
As of 2022, the pipeline throughput was about {{convert|1.2|Moilbbl/d|m3/d}}, about 1.2% of global oil demand.{{cite news|url=https://www.reuters.com/business/energy/russia-warns-sharp-caspian-pipeline-oil-export-drop-after-storm-2022-03-22/|title=Russia warns of sharp Caspian pipeline oil export drop after storm|publisher=Reuters|url-access=subscription|date=22 March 2022|access-date=23 March 2022}}
Operations
In 2008, CPC transported 31.5 million tons of crude, down from 32.6 million tonnes in 2007. In the first three months of 2009, the pipeline transported 8.7 million tonnes of oil.{{cite news
|title=CPC pipeline exports up in 2009
|date=2009-04-06
|publisher=Silk Road Intelligencer
|url=http://silkroadintelligencer.com/2009/04/06/cpc-pipeline-exports-up-in-2009/
|accessdate=2009-04-06
|url-status=dead
|archiveurl=https://web.archive.org/web/20100811042435/http://silkroadintelligencer.com/2009/04/06/cpc-pipeline-exports-up-in-2009/
|archivedate=2010-08-11}}
From 2001 to April 31, 2020, through the Tengiz-Novorossiysk pipeline system 662,784,671 tons of net oil were delivered to world markets. Of this amount, 582 814 809 tons is oil from Kazakhstan and 85 295 642 tons is oil produced in Russia. The total number of tankers processed during this period was 287.{{Cite web|last=|first=|date=|title=CPC Marine Terminal April shipments|url=http://www.cpc.ru/EN/press/releases/2020/Pages/20200506.aspx|url-status=live|archive-url=https://web.archive.org/web/20200509112852/http://www.cpc.ru:80/EN/press/releases/2020/Pages/20200506.aspx|archive-date=2020-05-09|access-date=|website=CPC}}
In March 2022, two of the three pipeline connected ship berths at the Port of Novorossiysk suffered storm damage. Repairs may take two months, with exports falling by up to 1 million barrels per day.
On 6 July 2022, a Russian court ordered the suspension of the pipeline for 30 days over oil spills. The CPC appealed the ruling and the suspension was lifted on 11 July of the following week, and the CPC was instead fined 200,000 rubles (US$3,300).
Despite the July 6 ruling, the operator of Kazakhstan's Tengiz oil field, Tengizchevroil, said that the transfer of oil through the CPC had not been interrupted since immediate suspension of the pipeline was technically impossible and would have resulted in "irreversible consequences".
The CPC pipeline handles almost all of Kazakhstan's oil exports, which makes the country oil supply routes heavily dependent on Russia. In addition, about 15% of the rest of Kazakhstan's oil exports are also transferred through Russia (while about 5% is sent to China or to various other destinations over rail and the Caspian Sea). After the 6 July suspension of the pipeline, Kazakhstan's President Kassym-Jomart Tokayev ordered the government of his country's to diversify its oil supply routes.
In November 2024 the International Consortium of Investigative Journalists and 26 media partners published the report "Caspian Cabals" to put public interests on environmental damage, but also to allegations of financial corruption and geopolitical threats.{{Cite web |date=2024-11-22 |title=Putin’s pipeline: How the Kremlin outmaneuvered Western oil companies to wrest control of vast flows of Kazakhstan’s crude |url=https://www.icij.org/investigations/caspian-cabals/kazakhstan-caspian-oil-pipeline-russia-chevron/ |access-date=2025-02-19 |website=International Consortium of Investigative Journalists |language=en-US}}
As part of a new sanctions package against Russia imposed on 10 January 2025, the U.S. Department of the Treasury granted exemptions for oilfield services related to the CPC.{{Cite web |date=2025-01-10 |title=New U.S. sanctions against Russian energy interests |url=https://www.reuters.com/business/energy/new-us-sanctions-against-russian-energy-interests-2025-01-10/ |website=Reuters}}
On 17 February 2025, on the eve of talks between the U.S. and Russian officials on ending the war in Ukraine, a drone attack by Ukrainian Air Force on a pumping station damaged energy equipment, a gas turbine unit, and a substation. Flows through the CPC were reduced by 30-40%.{{Cite web |date=2015-02-18 |title=Russia says drone attack cut oil via Kazakhstan Caspian pipeline by up to 40% |url=https://www.reuters.com/business/energy/russia-says-ukrainian-drone-attack-pipeline-carrying-1-global-crude-could-2025-02-18/ |access-date=2015-02-19 |website=Reuters}} The station is expected to be restored within one-and-a-half to two months.{{Cite web |last=Petroni |first=Giulia |date=2025-02-18 |title=Drone Attack on Caspian Pipeline Could Cut Oil Volumes From Kazakhstan by 30% |url=https://www.marketwatch.com/story/drone-attack-on-caspian-pipeline-could-cut-oil-volumes-from-kazakhstan-by-30-2b62fdee |access-date=2025-02-19 |website=MarketWatch |language=EN-US}}
Consortium
The Caspian Pipeline Consortium was initially registered in the Bermuda Islands in 1992. It is split into two companies: CPC-R operates the Russian section of the pipeline and CPC-K operates the Kazakh section.
The shareholders of the consortium are:
- Transneft - 24%
- KazMunaiGaz - 19%
- Chevron Caspian Pipeline Consortium Co. - 15%
- LukArco B.V. - 12.5%
- Mobil Caspian Pipeline Co. - 7.5%
- Rosneft - Shell Caspian Ventures Ltd. - 7.5%
- CPC Company - 7%
- BG Overseas Holdings Ltd. - 2%
- Eni International (N.A.) N.V. S.ar.l - 2%
- Kazakhstan Pipeline Ventures LLC - 1.75%
- Oryx Caspian Pipeline LLC{{Cite web |title=ORYX CASPIAN PIPELINE L.L.C - CompaniesRegistry.cy |url=https://companiesregistry.cy/company-details/oryx-caspian-pipeline-l-l-c-2137/ |access-date=2025-02-19 |website=Companies Registry Cyprus |language=en-US}} - 1.75%
See also
- {{annotated link|Energy policy of Kazakhstan}}
- {{annotated link|Kazakhstan–Russia relations}}
- {{annotated link|List of oil pipelines}}
- {{annotated link|Oil and gas basins of Kazakhstan}}
References
{{reflist|2}}
External links
- {{official website|https://www.cpc.ru/en/Pages/default.aspx}}
- [https://www.nytimes.com/imagepages/2010/07/23/business/23chevron-submap.html?ref=global New York Times map of pipeline route]
{{Pipeline Systems of Russia}}
{{Black Sea Energy}}
{{Authority control}}
{{Portalbar|Russia|Engineering|Transport|Economy|Energy}}
Category:Companies based in Moscow
Category:Energy infrastructure completed in 2001
Category:ExxonMobil buildings and structures
Category:ExxonMobil subsidiaries
Category:Kazakhstan–Russia relations
Category:Oil companies of Russia
Category:Oil pipeline companies
Category:Oil pipelines in Kazakhstan
Category:Oil pipelines in Russia