CPC to double Tengiz crude output to Black Sea
December 16. Central Asia News wire
The Chevron-led Caspian Pipeline Consortium (CPC) announced Tuesday it will spend $5.4 billion to double the capacity of the pipeline that carries crude from the Tengiz oil field in Kazakhstan to a terminal on the Black Sea.
The consortium plans to add 10 pumping stations and six storage tanks along the 939-mile pipeline and construct a third offshore mooring point at the Russian Black Sea terminal near Novorossiysk. The expansion plan also involves refurbishing five existing pumps and replacing a 55-mile stretch of pipe, Chevron announced in a Wednesday press release.
“The expansion of the CPC pipeline is a critical step forward to enabling the Tengiz expansion, one of the world’s largest oil fields with estimated recoverable reserves of 6 billion to 9 billion barrels,” the United Press International (UPI) news agency on Wednesday quoted Chevron as saying in the statement.
The expanded pipeline will have a capacity of 1.4 million barrels per day (bpd), up from 730,000 bpd currently.
It is projected to bring in revenue of $2.3 billion a year.
The project will be carried out in three phases through 2015.
Chevron said the doubling of output would not result in increased traffic through the congested Bosporus straits. The plan envisages oil being shipped in Suezmax tankers, instead of the Aframax tankers currently in use, the Bloomberg news agency cited Chevron Vice President Ian MacDonald as saying Thursday.