Russian Energy Minister Sergei Shmatko signed at an official ceremony on December 15 a final investment decision on the expansion project of the Caspian Pipeline Consortium (CPC). The Second Phase of the CTC will provide a substantial portfolio of orders for Russian companies from related industries and will have a maximum investment multiplier, said Energy Minister Sergei Shmatko, the Ministry press service reports.
Mr. Shmatko also stressed the importance of joint work of Russian and Kazakhstan sides in the CPC project, trusting partnership and the ability to find compromise solutions to the implementation of the complex and unique project.
Project of CPC expansion means the increase of the oil-trunk pipeline capacity to 67 million tons a year. This is the second phase of the pipeline that was initially projected in the feasibility study of CPC in 1998, taking into account the growing volume of production and supply of oil from Kazakhstan and Russia, the Ministry of Energy said.
Mr. Shmatko also stressed the importance of joint work of Russian and Kazakhstan sides in the CPC project, trusting partnership and the ability to find compromise solutions to the implementation of the complex and unique project.
Project of CPC expansion means the increase of the oil-trunk pipeline capacity to 67 million tons a year. This is the second phase of the pipeline that was initially projected in the feasibility study of CPC in 1998, taking into account the growing volume of production and supply of oil from Kazakhstan and Russia, the Ministry of Energy said.
CTC is the owner of the Tengiz-Novorossiysk oil pipeline with total length of 1,511 km, which connects the oil province of the west of Kazakhstan to the Russian Black Sea coast. In 2009, CTC boosted crude exports by 9.9% to 34.574 million tons. In late 2009, the Consortium stockholders agreed on the pipeline capacity expansion project to 67 million tons. The expansion project cost was estimated at $5.4bn.
The CPC’s stockholders include: Russian Federation (through Transneft company) holds a 31-percent stake, Kazakhstan (represented by KazMunaiGaz - 19% and Kazakhstan Pipeline Ventures LLC – 20.75%), Chevron Caspian Pipeline Consortium Company - 15%, LUKARCO BV – 12.5%, Mobil Caspian Pipeline Company – 7.5%, Rosneft-Shell Caspian Ventures Limited – 7.5%, BG Overseas Holding Limited - 2%, Eni International HA H.V. S.ar.l. - 2%, Oryx Caspian Pipeline LLC – 1.75%.
The CPC’s stockholders include: Russian Federation (through Transneft company) holds a 31-percent stake, Kazakhstan (represented by KazMunaiGaz - 19% and Kazakhstan Pipeline Ventures LLC – 20.75%), Chevron Caspian Pipeline Consortium Company - 15%, LUKARCO BV – 12.5%, Mobil Caspian Pipeline Company – 7.5%, Rosneft-Shell Caspian Ventures Limited – 7.5%, BG Overseas Holding Limited - 2%, Eni International HA H.V. S.ar.l. - 2%, Oryx Caspian Pipeline LLC – 1.75%.