The increase in volumes of oil production at Tengiz and Kashagan is forcing shareholders of CPC JSC to upgrade the capacity of the pipeline system.

“Currently, the shareholders of the Consortium have considered and generally agreed to implement a comprehensive Modernization Program of the CPC pipeline system,” said Nikolay Gorban, General Director of CPC JSC in Atyrau on July 9.

He says that, according to the received forecast applications of shippers, it is expected that the volume of oil supplies from the Republic of Kazakhstan for CPC will exceed the current mechanical throughput capacity of the CPC pipeline system, starting from 2022.

In this regard, the Caspian Pipeline Consortium needs to upgrade a number of pipeline system facilities. The current capacity of the oil pipeline system will be optimized.

These measures will provide flexibility of operation modes of pumping stations and the ability to receive additional volumes of crude oil from the territory of the Republic of Kazakhstan, with the optimal number of DRA and increased operating factors of the oil pipeline.

After the implementation of the program, the throughput capacity of the system will ensure the transportation of oil from the territory of the republic of at least 72.5 million tons per year. A further increase in throughput capacity can be achieved by increasing DRA consumption without replacing the equipment.

Work will be carried out on almost all area of the CPC facilities (pump stations and the Marine Terminal). Modernization of the linear part of the oil pipeline is not included in the scope of the program.

Thus, within the framework of the CPC Pipeline System Modernization Program at Atyrau pumping station, it is planned to carry out works on the station modernization, including the construction of a new main line pump. The possibility of upgrading the oil metering unit, replacing three mainline pumps, installing several booster pumps, constructing two vertical steel tanks with floating roofs with the volume of 20,000 cubic meters, constructing substations, transmission lines, upgrading protective distribution device, etc. is being considered at Tengiz pumping stations. At A-NPS 3Aand A-NPS 4in Kazakhstan, it is planned to replace the MOP impellers.

According to the package of documents of the final investment decision, it is planned to provide the possibility of receiving additional volumes of crude oil from the territory of Kazakhstan since mid-2022. In general, the Modernization Program itself will be completed until December 2023.

In total, the amount of investment costs for the period of 2019-2023 will be USD 599.9 million, of which CPC-K – USD 156.4 million, CPC-R – USD 443.5 million.

According to the General Director of CPC, the amount of taxes paid by CPC-K in Kazakhstan in 2018 exceeded KZT 31.2 billion. Data excluding the amount of mandatory pension contributions, social contributions and health insurance contributions listed.

In 2018, more than 61 million tons of oil were transported through CPC, which is 10.8 % or 5 million tons more than in 2017.

Of the 61 million tons of oil shipped in 2018, 54.3 million tons of oil was supplied by Kazakhstani shippers, 6.8 million tons came from Russia.

The largest volumes of oil to the CPC pipeline system in 2018 came from the fields of Tengiz, Karachaganak, Kashagan – 28.7 million tons, 10.3 million tons and 13.2 million tons of oil, respectively.

A general application of shippers for 67.7 million tons was received for 2019. At the same time, taking into account the actual delivery, the total volume of pumping can reach 65.1 million tons, of which from Kazakhstan – 57.7 million tons, from Russia – 7.4 million tons.

From 2001 to June 30, 2019 more than 613 million tons of oil was delivered to world markets through the Tengiz – Novorossiysk oil pipeline system. Of these, more than 533 million tons of Kazakhstani oil, and more than 79 million tons of Russian oil.

Photo: cpc.ru