CPC Pipeline Expansion Seen Complete Mid 2014 – Executive

May 28, 2009. Nasdaq. PARIS

A planned expansion in the capacity of the CPC pipeline, which transports oil from Kazakhstan to the Black Sea, could be complete by mid 2014, the director-general of the Caspian Pipeline Consortium said Thursday.

If a final investment decision is taken in mid 2010 as planned, then the expansion plan’s third and final phase is expected to be complete by mid 2014, Vladimir Razdukhov said on the sidelines of an energy conference in Paris.

Razdukhov said earlier that the CPC consortium is looking to make the final investment decision in favor of expansion in the middle of next year.

U.S. oil major Chevron Corp. (CVX) leads the consortium.

Kazakhstan, home to the giant Kashagan field, stands to become one of the world’s leading oil producers as more of its resources come on stream.

The CPC consortium’s expansion plan is to boost the capacity of the pipeline to 67 million metric tons a year upon completion of the third phase.

Razdukhov said it wasn’t possible to give definitive guidance as to when the different phases of the expansion will be complete before the final decision is made.

However, the plan is for an initial phase to boost the pipeline’s capacity to 35 million tons a year to be completed by mid 2012, if the investment decision is made in mid 2010, Razdukhov said.

The second phase, which would raise the annual capacity of the pipeline to 48 million tons, would then be completed in mid 2013, he said.