Skip to main content

Azerbaijan and Kazakhstan in talks to boost Kazakh oil transit

Published by , Editorial Assistant
World Pipelines,

Azerbaijan and Kazakhstan are in discussions to increase the transit of Kazakh oil through Azerbaijan, potentially raising the volume to between 5 and 7 million tpy, says GlobalData citing Reuters.

Zaur Gakhramanov, an adviser to the president of SOCAR, Azer-baijan's state-owned oil business, confirmed the development to the news agency.

Kazakhstan is actively seeking to diversify its energy export routes to lessen its dependence on Russian pipelines.

Currently, the majority of Kazakhstan's oil, amounting to 1.5 million bpd or 1.5% of the global supply, is transported via Russian infrastructure.

Gakhramanov revealed: "We are currently conducting negotiations with the Kazakh side about increasing oil transit from this country to 5 – 7 million tonnes."

The anticipated increase in transit capacity follows plans to inaugurate a new oil terminal near Baku this summer.

The reconstructed terminal in Dubendi is expected to handle up to 10 milliom tpy of oil annually, potentially doubling Azerbaijan's transit capacity to 20 – 25 million tpy.

In the previous year, the transit of Kazakh oil through Azerbaijan totalled 1.4 million tpy.

SOCAR projects an increase to 1.7 – 1.8 million tpy in the current year and further to 2.2 million tpy by 2025.

In March this year, an agreement between SOCAR and KazMunayGas was signed to gradually augment the volume of Kazakh oil transported through the Baku-Tbilisi-Ceyhan pipeline system to 2.2 million tpy.

Additionally, there are discussions to route 5 million tpy of Kazakh oil via the Baku-Supsa pipeline in 2023.

Earlier this week, Hungary's MVM agreed to acquire a 5% interest in the Shah Deniz gas field from Azerbaijan's Southern Gas Corridor.

This transaction is in line with the EU's strategy to diversify energy sources and Hungary's national energy objectives.

Operated by bp, the Shah Deniz field in the Caspian Sea is among the largest natural gas-condensate fields globally.

With the capacity to produce up to 29 billion m3 of natural gas and around 60 million bbls of condensate annually, the field has been a key energy source since its discovery in 1999.



Read the latest issue of World Pipelines magazine for pipeline news, project stories, industry insight and technical articles.

World Pipelines’ June 2024 issue

The June 2024 issue of World Pipelines includes a keynote section on hydrogen pipeline transport, in which Contributing Editor Gordon Cope offers a broad look at the global hydrogen pipeline market, and Atmos International discusses modelling pure hydrogen pipelines. Also in the issue: technical articles on subsea survey, pigging tool performance, HDD operations for the Trans Mountain Expansion project, and more.

Read the article online at:

You might also like


Embed article link: (copy the HTML code below):


This article has been tagged under the following:

Europe pipeline news Asia pipeline news


World Pipelines is not responsible for the content of external internet sites.