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Kazakhstan and Azerbaijan to lay new oil pipeline

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World Pipelines,

Azerbaijan’s Energy Minister, Natig Aliyev, is reported to have stated in the country’s official press that Azerbaijan and Kazakhstan are planning on laying the new Eskene-Kuryk-Baku (EKB) oil pipeline, which will extend for 739 km.

Azerbaijan and Kazakhstan are two oil rich countries with large oil reserves. Aliyev’s statement suggests that the counties are looking to enhance their energy relations with the recent pipeline plans.

In his article, Aliyev highlighted that hydrocarbon resources in Kazakhstan amount to 5.5 billion t of oil and 3 trillion m3 of gas. These figures would allow the country to produce some 80 million t of oil and 33.6 billion m of gas on an annual basis.

However, excluding the Baku-Tbilisi-Ceyhan (BTC) pipeline, the country does not have a safe and reliable export route. The capabilities of pipelines such as Tengiz-Novorossiysk, Atyrau-Samara, Atasu-Alashankou is insufficient for transportation on this scale, according to the article.

Considering the capacity of these routes and the volumes of export planned, Aliyev said that Astana has focused on the Kazakhstan Caspian transportation system (KCTS).

According to Trend, the KCTS must export Kazakh oil to international markets, primarily from the Kashagan field (via the Caspian Sea, through the Baku-Tbilisi-Ceyhan pipeline and other oil transportation systems in Azerbaijan and other transit countries.

The Minister said that Kazakhstan will be able to export some 150 000 bpd of oil from the Kashagan field via the BTC pipeline.

”The KCTS envisages construction of (EKB) […] The feasibility study of the EK section of the pipeline envisages construction of an oil pumping station at the Tengiz field, Tengiz-Oporny-Uzen-Aktau main oil pipeline, an oil terminal and a new port in Kuryk village, as well as reconstruction and expansion of the port in Aktau city.”

He added that construction of the EKB pipeline will allow Kazakhstan to export oil to ports in Georgia and Turkey. Initial capacity of the pipeline is expected to amount to 23 - 25 million tpy, with future expansion predicted to reach 56 million t.

Finally, according to Azernews, Aliyev noted four companies – Eni, Inpex, ConocoPhillips and Total – as shareholders in the BTC consortium. He stated that they own a 15% stake in the BTC and that they are involved in the development of the Kashagan field.

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