Caspian Pipeline Consortium (CPC) is a major international oil transportation project involving Kazakhstan, Russia and a number of the world's leading oil producing companies
Caspian Pipeline Consortium (CPC) is a major international oil transportation project involving Kazakhstan, Russia and a number of the world's leading oil producing companies, established for the purpose of construction and operation of a trunk oil pipeline 1,511 km in length.
Crude oil is supplied to CPC system mostly from the vast oil fields of West Kazakhstan and also from Russian oil producers. Through the system, crude oil is delivered to the Marine Terminal located near the settlement of Yuzhnaya Ozereevka (Novorossiysk) where it is loaded into tankers for further shipping to world markets. Comprising two joint-stock companies –Russian CJSC CPC-R and Kazakh JSC CPC-K – CPC accounts for over one-third of the total oil exports of Kazakhstan – a country that is becoming an increasingly important petroleum supplier to world markets. CPC transports oil using the most reliable and economically efficient route compared to other options.
The Consortium has created the region's first, and so far only, oil quality bank thanks to which the shippers who use CPC services receive full price for their oil. The Tengiz-Novorossiysk crude pipeline goes through the territory of Atyrau Oblast, Republic of Kazakhstan, and traverses the following Regions of the Russian Federation: Astrakhan Oblast, Republic of Kalmykia, Stavropol and Krasnodar Krais. Originally, CPC project was developed with the target of increasing the system initial throughput capacity by nearly– 2.5 times.
Currently, the Consortium is completing the Expansion Project to increase its pipeline throughput capacity to the target 67 MTA. The Expansion Project worth a total of $5.4 bln planned to construct and put into operation 10 new pump stations, upgrade of the existing PSs, replacement of an 88-km pipeline section in Kazakhstan, increase of the capacity of the Tank Farm at the Marine Terminal from 400,000 to 1 M tons, installation of a third single point mooring. The Expansion Project implementation will propel CPC to a new economic level.
Over the years of its functioning, CPC crude transportation route has proved its viability both economically, and environmentally, and in terms of operation safety.
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