Kazakhstan Caspian Transportation System to be launched in 2013
BAKU. June 5. KAZINFORM. /Arnur Mukhametkarim/ During the international conference “Caspian Oil and Gas” held in Baku President of “KazMunaiGaz” JSC Kairgeldy Kabyldin announced that more groups from Tengiz, Kashagan and Karashaganak deposits were involved in the project of creation of Kazakhstan Caspian Transportation System (KCTS). “The KCTS project will be finished in 2013. Its feasibility study is discussed”, he said. According to the Fineko web site, capital costs for KCTS, included into the regional cooperation strategy in energy sector of Central Asia Regional Economic Cooperation (CAREC), are estimated at USD 2.2 billion if the cost of tankers is excluded. Kazakhstan and commercial sources will cover expenses equally by USD 1.1 billion. The project includes a 729 km pipeline “Eskene-Kuryk” with the capacity of 23 million tons per year, oil-loading terminal in Kuryk and tanker transportation to Baku-Tbilisi-Ceyhan in Azerbaijan. The cost of the oil pipeline is estimated at USD 1.3 billion, terminal – at USD 500-600 million. As is known, the agreement on main principles of realization of the Trans-Caspian project between the State Oil Company of Azerbaijan and “KazMunaiGaz” Company was signed in November 2008. The document determines main conditions and principles of joint implementation of the project, the issues of financing, tariff making and etc. Successful realization of the hydrocarbons trasnportation project will allow to create a reliable system of long-term tanker transportation via oil terminals in Kazakhstan and Azerbaijan and its subsequent export through Baku-Tbilisi-Ceyhan pipeline and other transport infrastructure.