Kazakhstan is highly interested in supporting oil transport routes through the Caspian Sea, Asylbek Zhakiev, Chairman of the Board of Petrocouncil.kz, stated during the 2nd Caspian and Central Asia Oil Trading and Logistics Forum in Baku.
"We understand very well that 80% of Kazakhstan's oil is transported through a single pipeline. Geopolitical risks are extremely high. We saw how vulnerable we are to the recent events (Ukrainian drone attacks on the facilities of the Caspian Pipeline Consortium - ed). In any case, we have two alternative routes: the first and priority one is the Middle Corridor through the Caspian to Azerbaijan, and the second is the route to China. About 10 years ago, China invested in its route by building an oil pipeline with a capacity of up to 20 million tons. Kazakhstan could transport this volume of oil to China, but due to certain limitations, only 3–5 million tons are currently being delivered," Zhakiev said.
He noted that the main problem is Kazakhstan's inability to invest several billion dollars alone in expanding Caspian infrastructure:
"Therefore, we are working with European and American partners. However, in the long term, producers are not fully confident in this route. The cost of transporting one ton of oil via Russia and Azerbaijan differs sharply. So my question is: after the war ends, will the Azerbaijan route remain equally efficient and economically viable? Ultimately, everything is dictated by economics."