Tag Archives: pipelines

CPC pipeline upgrades pumping stations in Kazakhstan

ALMATY, SEPT. 14 2015 (The Conway Bulletin) — The Caspian Pipeline Consortium (CPC), has finished upgrade work to two pumping stations that will boost the capacity of its oil pipeline running from west Kazakhstan to Russia’s Black Sea port of Novorossiysk.

Plans to increase the capacity of the Tengiz field near Atyrau have been delayed because of low oil prices, but the gradual expansion of the CPC’s capacity is still important.

Specifically, the latest upgrade work was focused on the pipeline’s two pumping stations in Kazakhstan. The upgrade will boost the flow of oil through the pipeline to 38m tonnes of oil from 35m.

This is a stepping stone towards hitting higher capacity. Nikolai Savin, a deputy vice-president at Russian pipeline company Transneft, explained the consortium’s ambitions.

“The expansion will allow us to increase the volume of transported oil to 67-70m tonnes a year,” local media quoted him as saying. “In the future, the Kazakh fields at Tengiz, Karachaganak and Kashagan will ship around 55m tonnes through CPC.”

CPC, which was established in 2001, is an international pipeline jointly operated by the Russian and Kazakh governments together with national and multinational oil companies led by US’ Chevron. Chevron is also the lead Western partner developing the Tengiz field in the Tengizchevroil consortium (TCO).

The Tengiz field is Kazakhstan’s main oil producer, pumping roughly 27m tonnes of oil each year. This is a third of Kazakhstan’s total oil production. Almost all of the oil produced by Tengiz is exported via CPC.

For years, TCO has been planning to expand production. The project was suspended, though, earlier this year because of the sustained low oil prices, frustrating both investors and the Kazakh government.

According to Sauat Mynbayev, Chairman of Kazmunaigas, Kazakhstan’s state-owned company which holds shares in both CPC and TCO, a final investment decision for Tengiz will be made in Jan. 2016 (Sept. 17). In any case, he said costs had been cut.

“When it was planned, the TCO expansion was quoted at $38b,” Mr Mynbayev told the Interfax news agency. “In the current circumstances, we decided to re-negotiate with all contractors to bring the cost down to around $34b.”

ENDS

(News report from Issue No. 248, published on Sept. 18 2015)

Turkmen president travels to Kabul

AUG. 28 2015 (The Conway Bulletin) – Turkmen president Kurbanguly Berdymukhamedov visited Kabul and signed a series of deals with his Afghan counterparts, highlighting just how important he views improved relations between Turkmenistan and Afghanistan.

The bilateral deals were not particularly ground-breaking — two leaders agreed to share financial data more readily as well as improve improve cooperation in the energy and tech sectors — but the trip itself was important.

Although he is beginning to travel more and more, Mr Berdymukhamedov is not a particularly keen traveller so a high- profile meeting with Afghan president Mohammad Ashraf Ghani in Kabul is eye-catching.

Mr Berdymukhamedov is worried about the northward march of the Taliban and stability in general in the country.

Earlier this year, reports surfaced which said that Turkmen soldiershadpositioned themselves inside Afghan territory after a series of attacks on their border posts by the Taliban.

Afghanistan is also now a partner in the so-called TAPI gas pipeline project which is planned to run from fields in the east of Turkmenistan to India.

Without stability in Afghanistan and a strong central government the project is likely to remain just a pipe dream.

Expect more Kabul-bound trips by Mr Berdymukhamedov.

ENDS

(News report from Issue No. 246, published on Sept. 4 2015)

Gas flow restarts on Azerbaijani pipeline

SEPT. 3 2015 (The Conway Bulletin) – Gas flows along the Baku-Tbilisi-Er- zurum pipeline have resumed after a second attack by Kurdish rebels, the head of BP-Azerbaijan’s press service Tamam Bayatli told Azerbaijani media.

Kurdish rebels have twice attacked a section of the pipeline in Turkey over the past month. On each occasion, BP said gas flows had barely been impacted as the pipeline had either been empty or running at reduced capacity for maintenance.

The PKK group has claimed responsibility for the two attacks and said that it will mount more despite a pledged by the Turkish security forces to strengthen security.

The Baku-Tbilisi-Erzurum pipeline, sometimes referred to as the South Caucasus pipeline, is an important part of the network pumping gas from the Caspian Sea to Europe. Its main feeder is Azerbaijan’s Shah Deniz project which is being enlarged to produce more gas for Europe.

ENDS

(News report from Issue No. 246, published on Sept. 4 2015)

Turkmen leader travels to Kabul

AUG. 27 2015 (The Conway Bulletin) – Turkmen leader Kurbanguly Berdymukhamedov travelled to Kabul to meet with Afghan president Mohammad Ashraf Ghani, an important signifier that he wants to play a greater role in improving his neighbour’s stability. Turkmenistan has developed a handful of high profile projects with Afghanistan, including the TAPI pipeline that will pump gas to India.

ENDS

(News report from Issue No. 245, published on Aug. 28 2015)

Turkmengaz to lead TAPI

AUG. 6 2015 (The Conway Bulletin) – Turkmenistan, Afghanistan, Pakistan and India have picked Turkmengaz, the Turkmen national gas company, to lead the construction of the so-called TAPI pipeline which, they hope, will pump gas from Central Asia to the Indian subcontinent.

ENDS

(News report from Issue No. 242, published on Aug. 7 2015)

Explosion hits pipeline from Azerbaijan’s Caspian Sea

AUG. 4 2015 (The Conway Bulletin) – An explosion in Turkey on the Baku-Tbilisi-Kars-Ezurum gas pipeline has raised worries that Kurdish fighters and other factions may target energy transport infrastructure carrying oil and gas from the Azerbaijan’s Caspian Sea to Europe. Media reported an explosion on a remote section of the pipeline in east Turkey.

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(News report from Issue No. 242, published on August 7 2015)

Statoil quits Azerbaijani fields

JULY 20 2015 (The Conway Bulletin) – Statoil, the oil and gas company part owned by the Norwegian government, has decided to sell its 20% stake in the Trans- Adriatic Pipeline (TAP) project that will pump gas from Azerbaijani fields in the Caspian to consumers in Europe.

Rovnag Abdullayev, the head of Azerbaijani oil and gas company SOCAR, announced the news on Azerbaijani TV.

“Statoil has decided to leave the TAP project completely, and there is a company which is ready to buy its stake,” ANS TV quoted him as saying.

“Several companies have expressed an interest in buying Statoil’s stake, and it would be better if several companies would buy it.”

Statoil declined to comment.

If confirmed, Statoil’s decision to quit TAP is probably more a reflection on how it is

re-adjusting its portfolio rather than on the project itself. Statoil has already said it wants to reduce its exposure to risk in its portfolio and has sold its stakes in the giant Shah Deniz field in the Caspian Sea as well as in the South Caucasus Pipeline.

Stakes in these projects were snapped up by SOCAR, BP and Malaysia’s Petronas and Statoil’s stake in TAP will attract bids from companies looking for a high-profile project.

TAP is an 870km pipeline project that should link up with the Trans-Anatolian Pipeline near the Turkey-Greece border which will then carry Azerbaijani gas onto central Europe.

The current TAP shareholders are BP (20%), SOCAR (20%), Statoil (20%), Belgium’s Fluxys (19%), Spain’s Enagas (16%) and Swiss company Axpo (5%).

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(News report from Issue No. 241, published on July 23 2015)

Turkmen minister visits Afghanistan

JULY 23 2015 (The Conway Bulletin) – Turkmenistan’s foreign minister Rashid Meredov will travel to Afghanistan for talks with his Uzbek counterpart, media reported. Turkmenistan has become increasingly worried about the build up of Taliban forces on its borders. It also has an interest in stability in Afghanistan because of the proposed TAPI pipeline that will pump gas to Pakistan and India.

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(News report from Issue No. 241, published on July 23 2015)

Turkmenistan hopes to finish East-West pipeline

JULY 23 2015 (The Conway Bulletin) – Turkmenistan hopes to complete construction of is 300km East- West gas pipeline by the end of the year, local media reported quoting government officials. The pipeline is important because it will pump gas from Turkmenistan’s fields in the east to the Caspian Sea for shipment to Europe.

ENDS

(News report from Issue No. 241, published on July 23 2015)

India’s Modi gives a clear message in Turkmenistan

Indian PM Narendra Modi travelled to Turkmenistan as part of this grand tour of Central Asia and urged for progress on a gas pipeline that will pump Turkmen gas to India to be accelerated.

TAPI, the name of the pipeline, is due to select its consortium leader on Sept. 1 and Mr Modi told Turkmen leader Kurbanguly Berdymukhamedov that he wanted the construction phase to begin soon.

“The most significant initiative in our relationship is the TAPI Gas Pipeline,” he said in a statement released to the media. “This could transform regional economic cooperation and bring prosperity along the route. We welcomed the agreements between the four countries for the pipeline. We underlined the need to implement the project quickly.”

The TAPI project is ambitious. It envisions a route across Afghanistan and Pakistan to India.

And Mr Modi appeared aware of the potential problems this route could encounter.

He also suggested that, if there were problems, a land-sea route via Iran could be used to ship gas to India from Turkmenistan.

TAPI is slated to cost around $10b and to run for 1,800km.