Kazakhstan Oil and Gas Pipelines

Published October 11th, 2000 - 02:00 GMT

Oil Pipeline Network: 

KazTransOil was created in April 1997 to manage Kazakhstan's pipeline network, with the state owning 100 percent of its shares. KazTransOil currently transports about 80 percent of the oil produced in Kazakhstan, but will face competition when the CPC pipeline becomes operational in 2001.  

 

Over the next five years, KazTransOil will need $300 million for pipeline modernization and repair, and will invest $1 billion by 2015. Modernization will be financed by the use of higher tariffs. Saudi Arabia's Alsuwaiket group has signed a contract to modernize and expand the oil pipeline network. 

 

Kazakhstan's largest oil export line is the Western Kazakhstan pipeline system that transports oil from fields in Atyrau and Mangistau in the northern Caspian region to Russia. This 1,800-mile pipeline runs from Uzen-Atyrau-Samara, and accounts for 75 percent of Kazakhstan's oil exports.  

 

Although it has a capacity of 240,000 bbl/d, exports have been less because Kazakstan's annual oil export quota through the Russian pipeline system had been as little as 70,000 bbl/d in 1998. The 2000 quota was increased to 170,000 bbl/d, and the pipeline's capacity will be increased to 310,000 bbl/d with the addition of another pumping station.  

 

The other export pipeline is the Kenkyak-Orsk line that transports oil from western Kazakhstan to Russia. This pipeline runs from the Aktyubinsk fields to the Orsk refinery in Russia, and has a capacity of 130,000 bbl/d.  

 

Oil is imported via the Eastern Kazakhstan and Central Asia pipeline system that transports oil 1,268 miles from Russia to southern Kazakhstan. The pipeline has a capacity of 460,000 bbl/d, and brings Siberian oil to the Pavlodar refinery in Kazakhstan. The other major pipeline transports oil from the Kumkol fields in central Kazakhstan to the Shymkent refinery in southern Kazakhstan.  

 

Natural Gas Distribution Network: 

In general, the Kazakh gas sector faces a lack of infrastructure, especially pipelines. Although six gas pipelines connect Kazakhstan to other Central Asian republics and Russia, gas producing areas within Kazakhstan in the west are not connected to consuming areas such as the populous southeast and industrial north. 

 

As a result, Kazakhstan has two separate gas pipeline networks, in the west and in the southeast. Construction of an internal pipeline to transport gas from Kazakhstan's western field to all oblasts in Kazakhstan is under consideration.  

 

Kazakhstan exports its gas production from the west to Russia, and imports 40 percent of its natural gas consumption needs from Turkmenistan and Uzbekistan. In October 1999, Uzbekistan agreed to renew exports to Kazakhstan, subject to adherence to a plan to pay $1.5 million in debt for past deliveries.  

 

Kazakhstan cut off gas supplies to Kyrgyzstan for lack of payment in 1999. Kazakhstan also imports a small amount from Russia, and Kazakhstan has considered an old Soviet plan to import natural gas from West Siberia. However, Uzbekistan stopped deliveries in 1998 because of unpaid bills. 

 

Tractebel (Belgium) received a concession to the gas supply system in Almaty in 1996, and in July 1997, Kazkahstan awarded Tractebel a 15-year contract to manage the western Kazakhgaz and southern Alaugaz distribution systems as well.  

 

Tractebel pledged to invest $1.0-$1.5 billion in Kazakhstan on investment, repair, construction, and planning costs, including a $150 million gas line in southern Kazakhstan to bypass Kyrgyzstan.  

 

However, the Kazakh government reconsidered Tractebel's concessions for the gas distribution networks amid allegations that Tractebel had failed to meet its contract committments. Kazakhstan announced at the end of April 2000 that state-owned KazTransGaz would take control of all of Kazakhstan's gas pipeline network by paying $100 million to purchase Tractebel's ownership share of Intergas Central Asia, Tractebel's subsidiary which has operated Kazakhstan's pipeline network.  

 

Note: File last modified: May 12, 2000. 

Source: United States Energy Information Administration. 

 

 

 

© 2000 Mena Report (www.menareport.com)

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