Kazmunaygaz and Socar working on Caspian Transportation System - Kazakhstan
This article is extracted from International Oil Letter, Vol 24 issue 46, published 24 November 2008.
The State energy companies of Azerbaijan and Kazakhstan, Socar and KazMunaiGas, respectively, have agreed on the basic principles of a project to bring Kazakh oil across the Caspian Sea from 2012 to feed world markets. The majority of the Kazakh crude for this US$ 3 billion Kazakhstan Caspian Transportation System (KCTS) project will come from the Tengiz and Kashagan fields, and will be moved across the sea in tankers. The Trans-Caspian project will give much-needed relief to Kazakhstan's energy sector, which is struggling to provide enough capacity for the export of crude to buyers in Europe and China.
Initial capacity is forecast to be 500,000 bo/d, but settling in the range 750,000 to 1.2 MMb/d. Output will be shipped to Baku and then through either the Baku-Tbilisi-Ceyhan pipeline, which takes oil across Georgia to the Turkish Mediterranean coast, or across the Black Sea. The project envisages loading terminals on the Kazakhstan Caspian coast, tankers, off-loading terminals on the Azeri coast and linking facilities to the BTC pipeline.
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