The possibility of transit of Kazakh oil through the Aktau port via Azerbaijan in the future will depend on its economic feasibility, Kazakhstan’s Ministry of Energy told Trend.
The Kazakh oil was not exported via this route in 2016, according to the ministry.
Kazakhstan has previously transported its oil through the Baku-Tbilisi-Ceyhan pipeline, as well as by rail from Baku to the Black Sea ports of Georgia.
From the results of the developed long-term balance of production and distribution of oil in Kazakhstan, it was concluded that there will be a need for the project of the Kazakhstan Caspian Transport System (KCTS) by the start of implementation of the Phase 2 of Kazakhstan’s Kashagan field development.
The KCTS is expected to consist of the Eskene-Kuryk oil pipeline in Kazakhstan and Trans-Caspian Oil Transport System, comprising an oil loading terminal in Kuryk port on the Kazakh coast of the Caspian Sea, tankers and other vessels, an oil discharge terminal on the Azerbaijani coast of the Caspian Sea, as well as facilities connecting it to the Baku-Tbilisi-Ceyhan pipeline.
Further, oil must be transported to international markets through the Baku-Tbilisi-Ceyhan oil pipeline and/or other oil transportation systems located in the territory of Azerbaijan, Georgia and Turkey.
The energy ministry said the forecast says that the capacity of the Caspian Pipeline Consortium pipeline, via which Kashagan oil is now being exported, will be increased within the expansion project currently being implemented.
At the same time, the energy ministry noted that it does not yet hold talks with the Azerbaijani side on the KCTS.
Kashagan located in the north part of the Kazakh sector of the Caspian Sea is one of the biggest oil fields opened in the last 40 years. Its recoverable oil reserves are assessed at 9-13 billion barrels. Oil production at Kashagan was launched in autumn 2016 and Kazakhstan plans to produce 8.9 million tons of oil and 5.6 billion cubic meters of gas from this field in 2017. It is planned to increase production to 13 million tons of oil and 9 billion cubic meters of gas per year in subsequent years.