CPC Completes Expansion Phase 1 in Kazakhstan

Caspian Pipeline Consortium has commissioned the upgraded Tengiz and Atyrau pump stations. An official commissioning ceremony was held in Atyrau on September 9, marking Expansion phase 1 completion in Kazakhstan, azh.kz reports citing CPC press service.

The event was attended by Atyrau Region Deputy Akim Timurjan Shakirov, KTO Deputy General Director for Development Bulat Zakirov, the CPC Management team led by General Director Nikolai Brunich and Shareholder representatives.

Timurjan Shakirov congratulated the company on behalf of the Atyrau Region leadership on the completion of this significant milestone, which symbolically coincided with the 80th anniversary of pipeline transport in Kazakhstan. He stated that CPC was a good corporate citizen who built social infrastructure facilities in the region and had created over 3,000 temporary and 350 permanent jobs for the local public.

Bulat Zakirov stated that the commissioning of the Atyrau and Tengiz pump stations was going to help CPC significantly increase its transportation volumes, which had special significance both for the company and the republic.

CPC General Director Nikolai Brunich congratulated all those who had been directly involved in the construction and completion of the significant facilities for CPC. He particularly thanked teams and specialists involved in the execution of the Expansion Project, including Kazakh pump station and pipeline construction coordinator Talgat Ukasov, KPV PMC CEO Timur Rakhanov, Prime Construction Contractor KSS, and the entire Expansion Project team. He also spoke highly about the Operations and Eastern Region team lead by Sarsembay Murinov.

– The Easter Region specialists demonstrated the highest level of professionalism and did their best to make sure the new facilities went into operation as safely and effectively as possible, increasing the pipeline system capacity, – stated Nikolai Brunich.

The event was concluded with a video conference link-up where the managers of newly-commissioned pump station manager and an MCC dispatcher reported to the CPC General Director that the facilities were ready to be commissioned and the ceremony participants pushed a symbolic button. Expansion Phase 1 facilities in Kazakstan went into operation.

CPC pipeline system is one of the largest investment projects in the energy industry with participation of foreign capital on the CIS territory. The length of the pipeline connecting the oil fields in Western Kazakhstan with the Marine Terminal near Novorossiysk is 1,511 km. CPC Marine Terminal is equipped with single point moorings which allow for safe tanker lifting at a considerable distance from the shore, also when the weather conditions are unfavorable.

The Expansion Project includes rehabilitation of 5 existing and construction of 10 additional pump stations (2 in the Republic of Kazakhstan and 8 in the Russian Federation), six new storage tanks (100,000 cu.m each) in addition to the existing four near Novorossiysk and a third SPM at the CPC Marine Terminal, and also the replacement of an 88 km pipeline section in Kazakhstan with a larger diameter pipe. The total amount of the Project investments will be US$ 5.4 billion.

CPC Shareholders: Russian Federation (represented by Transneft – 24% and CPC Company – 7 %) – 31%; Republic of Kazakhstan (represented by KazMunayGaz – 19% and Kazakhstan Pipeline Ventures LLC – 1.75%) – 20.75%; Chevron Caspian Pipeline Consortium Company - 15%, LUKARCO B.V. – 12.5%, Mobil Caspian Pipeline Company – 7.5%, Rosneft-Shell Caspian Ventures Limited – 7.5%, BG Overseas Holding Limited - 2%, Eni International N.A. N.V. - 2% и Oryx Caspian Pipeline LLC – 1.75%.