KMG completed the construction of an oil transportation infrastructure to supply hydrocarbons to export markets. Medium-term priorities:
- Increase existing capacity utilisation by making KMG’s oil transportation systems more attractive and competitive
- Improved operating-cost control
The two oil transportation modes at KMG are trunk pipelines and the marine fleet.
Kazakhstan’s pipeline infrastructure is owned by JSC KazTransOil – the national oil pipeline operator, its two joint ventures (Kazakhstan–China Pipeline LLP and MunayTas North-West Pipeline Company LLP) and Caspian Pipeline Consortium. The existing pipeline infrastructure in Kazakhstan has adequate potential to support increased oil transportation volumes from promising projects.
JSC KazTransOil (KTO) is the national oil pipeline operator of the Republic of Kazakhstan. The company owns an extensive network of trunk oil pipelines with a total length of 5,372 km, to which virtually all oil fields in Kazakhstan are connected. The Company transports oil to Kazakhstan’s four major refineries, pumps oil for export via the
Kazakhstan–China Pipeline LLP is the owner of the
MunayTas North-West Pipeline Company LLP (MT) is the owner of the 449 km Kenkiyak–Atyrau oil trunk pipeline. In 2018, the company started implementing the Kenkiyak–Atyrau pipeline reverse project to support supplies of West Kazakhstan’s oil to domestic refineries and to compensate production declines in the Aktobe and Kyzylorda Regions, as well as to support exports to China totalling up to 6 mtpa. The project cost is KZT 30.9 bln. Starting 1 July 2021, reverse transportation of up to 6 mtpa of oil was enabled at the Aman oil pumping station.
Caspian Pipeline Consortium (CPC) is an international oil transportation project involving Russia, Kazakhstan and the world’s leading industry players. It was established for the construction and operation of a 1,510 km trunk pipeline (452 km are within Kazakhstan). The CPC oil pipeline is a priority export route for Kazakhstan’s oil supplies, connecting Kazakhstan’s Tengiz oil field with the Yuzhnaya Ozereyevka oil terminal on the Black Sea (near the Port of Novorossiysk). Oil transportation via the CPC pipeline is supported by 15 oil pumping stations, an oil storage tank farm with a total capacity of 1.3 mln m3 and three single-point moorings.
In view of the anticipated increases in oil production from Tengiz and Kashagan, in 2019 CPC shareholders resolved to launch a debottlenecking project for the pipeline system, which is expected to increase the volume of Kazakhstan’s oil transportation to 72.5 mtpa. The project timeframe is 2019–2023, and its cost is USD 600 mln. The project will be financed using CPC’s own funds.
|Indicator||Trunk pipeline transportation||Marine fleet transportation|
|Management company||KazTransOil (KTO)||Kazakhstan–China Pipeline (KCP)||MunayTas (MT)||Caspian Pipeline Consortium (CPC)||Kazmortransflot (KMTF)|
|Interest||KMG: 90 %10% of shares are owned by minority shareholders who acquired them under the People’s IPO programme.||КТО: 50 %||КТО: 51 %||KMG: 20,75 %||KMG: 100 %|
|Key destinations||Exports to Europe and China, domestic market||Exports to China, domestic market||Exports to China, domestic market||Exports to Europe||Exports to Europe|
|Key routes|| Kazakhstan’s refineries |
Port of Aktau
Oil transshipment to the CPC and Atasu–Alashankou pipelines
| Atasu–Alashankou |
|Kenkiyak–Atyrau||Tengiz–Novorossiysk|| Black Sea |
|Total length, km||5,372||1,759||449||1,510||n/a|
|Capacity, mtpa|| 17.5Capacity of the Atyrau-Samara section. |
5.2Capacity of the Port of Aktau (large-capacity vessel berths, oil loading).
Trunk pipeline oil transportation
In 2021, KMG’s share in the consolidated volume of trunk pipeline oil transportation was marginally up by 0.8% to 64,710 ths tonnes. The increase was due to higher domestic transportation to Kazakh refineries in order to ensure necessary refining volumes in the domestic market. At the same time, oil exports were down as subsoil users agreed to limit production as part of the OPEC+ agreement and amid a natural decline in production at mature fields.
|Kazakhstan–China Pipeline (100%)||16,200||15,883||17,412|
|Caspian Pipeline Consortium (100%), export||63,256||59,027||60,728|
|Caspian Pipeline Consortium||100||n/a||n/a|
|Kazakhstan–China Pipeline (100%)||14,590||14,368||15,592|
|Caspian Pipeline Consortium (100%)||82,997||77,207||79,446|
|Kazakhstan–China Pipeline (50%)||7,296||7,185||7,796|
|Caspian Pipeline Consortium (20.75%)||17,222||16,020||16,485|
| KazTransOil ||44,463||42,298||41,224|
|Kazakhstan–China Pipeline (50%)||8,100||7,942||8,706|
|Caspian Pipeline Consortium (20.75%)||13,126||12,248||12,601|
|KazTransOil||4,772 (4,717 from 01.09.2019)||4,110||4,356 (4,328 from 01.12.2021)|
|Kazakhstan–China Pipeline||7,158||6,456 (7,158 from 01.02.2020)||4,323.7|
|MunayTas||5,724 (5,912 from 01.07.2019)||5,457.3 (5,912 from 25.12.2020)||5,912|
|KazTransOil, KZT per tonne per 1,000 km||6,399||6,399 (7,359 from 01.03.2020)||7,359|
|Kazakhstan–China Pipeline, KZT per tonne per 1,000 km||6,799||6,799||6,799|
|MunayTas, KZT per tonne per 1,000 km||5,912||5,912||5,912|
|Caspian Pipeline Consortium, USD per tonne||38||38||38|
Tariffs for trunk pipeline oil transportation
The tariffs for crude oil transportation to Kazakhstan’s domestic market are regulated by the government.
According to Law of the Republic of Kazakhstan No.
Oil transportation by sea
NMSC Kazmortransflot LLP (KMTF) is the National Sea Carrier. Its assets include:
- merchant fleet: owned oil tankers: Astana, Almaty and Aktau, each with a deadweight of 12,000 tonnes; and Aframax oil tankers – Alatau and Altai, each with a deadweight of 115,000 tonnes;
- marine support fleet: 8 barge platforms of KMG series with a capacity of 3,600 tonnes each;
- fleet to support Tengizchevroil’s Future Growth Project: 3 Caspian-class barges (MCV) – Barys, Berkut and Sunkar with a capacity of 5,200 tonnes each, and 3 tugboats – Talas, Emba and Irgiz with a bollard pull of 40 tonnes-force each.
The main current routes for oil transportation by sea:
- Routes in the Caspian Sea waters
- Routes in the Black Sea and Mediterranean Sea waters.
In 2021, the total volume of transportation by sea increased moderately by 865 ths tonnes
In March 2021, the Company completed the conversion of an MCV ship Barys into a container ship. Container cargoes will be shipped along the Aktau–Baku–Aktau feeder line. Also, KMTF signed an agreement with KTZ Express Shipping LLP that will see KMTF obtain the right of ownership to bulk carriers.
In May, KMTF became the owner of two bulk carriers: Beket–Ata and Turkestan. In Q3 2021, all obligations were honoured to Al Hilal Islamic Bank JSC as part of an ijara Mawsufah Fi Al Thima agreement. In addition, a general agreement on container shipping along the Baku–Turkmenbashi–Baku route was signed between KMTF and ADY Container LLC.
|Black Sea and Mediterranean Sea||10,186||8,361||9,318|
|Black Sea and Mediterranean Sea||9,676||7,942||8,852|