Kazakhstan to study possibility of building oil pipeline along bottom of Caspian Sea

Kazakhstan is working with Azerbaijan on the possibility of transporting up to 5 million tons of Kazakh oil via the Baku-Supsa oil pipeline per year, as well as constructing an oil pipeline along the bottom of the Caspian Sea, Report informs, citing the Energy Ministry of Kazakhstan.

“The issue is being discussed with the Azerbaijani side regarding the possibility of transporting Kazakh oil through the Baku-Supsa oil pipeline in the amount of up to 5 million tons per year. In addition, Kazakhstan will study the possibility of building an oil pipeline along the bottom of the Caspian Sea,” the ministry said.

Also in the medium term, the possibility of building an oil pipeline from Atyrau to the port of Kuryk is being considered.

In general, the ministry considers it possible to increase trans-Caspian sea oil transportation to 7 million tons per year, which corresponds to the existing capacity of the Aktau port.

“This will require about 10 new tankers with a deadweight of 12,000 tons to ensure safe transportation. The supply of Kazakh oil to export destinations will depend on economic feasibility and agreements between economic entities,” the Ministry of Energy said.

At the same time, the ministry does not see a full-fledged alternative to the oil export route through the Caspian Pipeline Consortium (CPC) shortly.

“CPC accounts for 56.6 million tons, or 80%, of the total export volume of 70.5 million tons,” the ministry explained.

Since 1999, Azerbaijan has used the Baku-Supsa oil pipeline to transship fuel from the Chirag field. In the spring of 2022, it was decided to suspend fuel supplies along this route due to transportation problems. All Azerbaijani oil is now exported via the Baku-Tbilisi-Ceyhan (BTC) oil pipeline.

Last year, Azerbaijan offered Kazakhstan to transport 5 million tons of Kazakh oil per year from the Kashagan field via the Baku-Supsa pipeline. In 2023, supplies of Kazakh oil via the BTC route increased 5.5 times, to 1.392 million tons.