expansion boosts caspian pipeline export capacity

February 23, 2015 – Chevron, in partnership with the Caspian Pipeline Consortium (CPC), completed the first increase in incremental capacity of its 935-mile (1,505-km) pipeline – the primary route for exporting crude oil from the company's Tengiz, Korolev and Karachaganak fields in Kazakhstan.

Map of CPC Pipeline

The 935-mile (1,505-km) CPC pipeline is the primary route for exporting crude oil from the Tengiz, Korolev and Karachaganak fields in Kazakhstan to a marine terminal in the Russian Black Sea port of Novorossiysk.

This milestone is part of a $5.4 billion expansion project for the CPC pipeline, which almost doubles the capacity with an additional 670,000 barrels of oil per day (bopd) by 2016. This incremental capacity will help meet growing infrastructure needs along the heavily travelled route from the Tengiz Field to the Russian Black Sea port of Novorossiysk.

During 2013, the CPC pipeline, which also serves other producing fields in Kazakhstan and Russia, transported an average of 706,000 bopd from Atyrau, Kazakhstan, to Novorossiysk. The pipeline will increase its capacity in stages before ultimately reaching 1.4 million bopd in 2016.

"This year, all of us – CPC, our partners, shareholders and shippers – have seen the positive business impact of almost three years of expansion activity," said Chevron's Dennis Fahy, first deputy general director, CPC Operations.

The CPC expansion project includes the rehabilitation of five existing pump stations along with the construction of 10 additional pump stations (two in Kazakhstan and eight in Russia). The project also includes constructing six new 26-million-gallon storage tanks near the existing four tanks in Novorossiysk, and replacing 55 miles (88 km) with a larger-diameter pipeline in Kazakhstan.

"Since delivering its first cargo in 2001, the CPC pipeline has been a vital export route for the Caspian region," said Ian MacDonald, general manager of Business Development and Transportation for Chevron Europe, Eurasia and Middle East Exploration and Production. "For Chevron, the expansion will enable all of Tengizchevroil's current production, along with most of our equity production from Karachaganak, to be transported by the most efficient and cost effective route to world markets. Expansion will also facilitate future production growth in these projects."

Published: February 2015