Kazakhstan Caspian Transportation System

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Kazakhstan Caspian Transportation System (KCTS) was a proposed oil pipeline in Kazakhstan. As of 2022, it had been over four years without evidence for further development of the system, and it is considered cancelled.

Location

The pipeline would originate in Eskene to and terminate in Kuryk, Kazakhstan.

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Project details

• Operator: Eni SpA, Inpex, ConocoPhillips, Total SA
• Owner: Kazakhstan Ministry of Energy
• Parent company: Government of Kazakhstan
• Capacity: 600,000 barrels per day
• Length:
• Status: Shelved
• Start year: 2023

Background

The KCTS was originally planned to consist of an Eskene-Kuryk oil pipeline in the territory of Kazakhstan and Trans-Caspian system, including the oil terminal in Kuryk port on the Kazakh coast of the Caspian Sea, tankers and vessels, oil discharge terminals on the Azerbaijani coast of the Caspian Sea and connecting facilities to the Baku-Tbilisi-Ceyhan pipeline system. Oil would subsequently be transported to global markets through the Baku-Tbilisi-Ceyhan pipeline and other pipelines in Azerbaijan, Georgia and Turkey.

The KCTS was initially considered in 2007 to transport oil from the Kashagan field.

In 2008, KazMunaiGas (the national oil company of Kazakhstan) and SOCAR (the national oil company of Azerbaijan) signed a KCTS agreement, under which Kashagan oil would be shipped through the Caspian Sea to the Caucasus and not through Russia. However, the project was postponed due to the uncertainty regarding the launch of production at the Kashagan field, as well as the expansion of Tengiz field in Kazakhstan.

In February 2017, negotiations on building the pipeline resumed in anticipation of growing oil exports due to the start of production at the Kashagan field. In July 2018 the governments of Kazakhstan and Azerbaijian were reported to be working on developing the Trans-Caspian Oil Pipeline, which would feed the Kazakhstan Caspian Transportation System.

As of May 2022, there was no evidence for progress on the KCTS in over four years, and it is presumed to be cancelled.

Articles and resources

Related GEM.wiki articles

Proposed Pipelines in Kazakhstan