Azerbaijan and Central Asian countries urged to develop new oil routes

Azerbaijan, Kazakhstan, and Turkmenistan need to develop additional oil supply routes rather than replace existing ones, the founder and director of Central Asia Marketing, Colin Nesbitt, said at the 2nd Caspian and Central Asia Oil Trading and Logistics Forum held in Baku, Report informs.

According to him, significant investments are required in railway and port infrastructure on both sides of the Caspian. One of the key solutions could be the installation of single point mooring (SPM) systems.

"The point is that SPMs are placed at sea at a distance of 2-3 km from the shore. In particular, off the coast of Baku and Kuryk, the SAL system promoted by APL can be used. Unlike traditional SPMs, where tugs are needed to hold the tanker, SAL technology allows operating without them," noted Nesbitt.

The expert emphasized that producers do not necessarily have to take on rigid commitments to supply large volumes. So-called "contingency contracts" could be the solution.

"This is a viable model: producers invest in upgrading capacities in Kazakhstan and Azerbaijan by entering into a 'trigger contract.' When an urgent need arises, the route is activated. The infrastructure is already in place, which benefits transit countries," he explained.

Even relatively small volumes, for example, 5 million tons of oil per year with a total production of 40 million tons, make it possible to ensure the availability of a reliable backup route.

Nesbitt also noted that it is important to maintain a continuous flow of oil toward Baku and further through the Baku-Tbilisi-Ceyhan (BTC) pipeline to preserve business ties and route readiness. According to him, for light Kazakh condensate, BTC remains the only viable option, with further deliveries carried out by rail through Georgia.