Kazakhstan views the Middle Corridor as an important alternative for oil exports, but its development is slowed by infrastructure limitations and higher transportation costs, Kuanysh Keskinbayev, Director of Commercial Affairs at KMG Kashagan, stated during the 2nd Caspian and Central Asia Oil Trading and Logistics Forum in Baku, Report informs.
According to him, Kazakhstan and Azerbaijan are becoming increasingly significant players in regional energy logistics, which raises the role of the Middle Corridor.
"This route is particularly important because, in terms of regulatory compliance, it remains one of the few routes operating without major disruptions," the director said.
Keskinbayev emphasized that 80% of Kazakhstan's oil is still transported via the Caspian Pipeline Consortium. The remaining volumes are directed through Russia's Novorossiysk and Ust-Luga ports, as well as other routes, including Germany via the Druzhba pipeline, he added.
"Today, certain political issues have arisen regarding Druzhba, which restrict diversification and transit. This may create conditions for increasing volumes through the Middle Corridor," he noted.
Currently, the Middle Corridor's capacity is up to 5 million tons of oil per year. Expanding this would require investments in Aktau port infrastructure, tanker fleets, and related facilities.
The official also pointed out that transportation via this route is more expensive, but part of the cost is offset by the higher price of Azerbaijani oil compared to the Caspian Pipeline Consortium blend: "As a result, the difference in net sales revenue is not very large, though the CPC remains the more favorable route."
Keskinbayev also mentioned that despite recent challenges caused by weather and temporary capacity losses, Kazakhstan and international partners continue working to ensure stable operation of the CPC: "The pipeline is currently operating at full capacity, and we expect greater stability, especially during the winter period."
He further stated that the Supsa route remains economically less attractive: "Costs there are significantly higher, and oil is quoted similarly to the CPC blend. Compared to the Baku–Tbilisi–Kars (BTK) route, the current Supsa configuration unfortunately does not work."