November 24, 2010 17:00
CPC pipeline expansion to cost over $5 bln - source (Part 2)
MOSCOW. Nov 24 (Interfax) - It will cost more than $5 billion to expand the Caspian Pipeline Consortium (CPC) oil pipeline, a source close to the consortium's shareholders told Interfax.
"The CPC expansion will cost more than $5 billion. There are real, objective reasons - the higher cost of tubular products and pumps, electricity charges plus inflationary trends. All this has an impact," the source said.
The source also said the CPC's operating budget for 2011, not including the expansion costs, would be $300 million.
The CPC's phased expansion was originally estimated at $4.6 billion. The expansion is aimed at boosting throughput capacity from 32 million to 67 million tonnes or, if anti-friction additives are used, to 76 million tonnes. The project foresees the construction of ten additional oil-pumping stations (two in Kazakhstan and eight in Russia), six reservoirs for oil storage near Novorossiisk and a third single buoy mooring at CPC's sea terminal. The consortium also plans to replace 88 kilometers of pipeline in Kazakhstan.
Existing pumping stations should now be modernized, the 88 km of pipeline in Kazakhstan replaced and the mooring built by 2012 in order to increase the system's capacity to 35 million tonnes from 28 million tonnes.
The second phase, which should raise capacity to 48 million tpa, should be implemented in 2013 and will see five new pumping stations and three new 100,000 cu m tank farms built at the sea terminal.
The third phase, in which another five pumping stations and three 100,000 cu m reservoirs will be built and throughput capacity augmented to 67 million tpa, is planned for 2014.
The CPC's sovereign shareholders are Russia with 31% (managed by Transneft (RTS: TRNF) - 24% and CPC Company - 7%) and Kazakhstan has 20.75% (KazMunaiGas - 19% and Kazakhstan Pipeline Ventures LLC - 1.75%). The rest of the consortium belongs to private companies: Chevron Caspian Pipeline Consortium Company (15%), LUKARCO B.V. (12.5%), Rosneft-Shell Caspian Ventures Limited (7.5%), Mobil Caspian Pipeline Company (7.5%), Eni International (N.A.) N.V. (2%), BG Overseas Holding Ltd (2%) and Oryx Caspian Pipeline LLC (1.75%).
(Our editorial staff can be reached at email@example.com)
July 20, 2017
Moscow expects U.S. drills in Tajikistan to facilitate increase of region's stability level - Foreign Ministry
Aliyev declares Karabakh, Armenia 'historical Azeri lands'
Russian-U.S. talks on setting up cyber security working group under way - Russian president's envoy (Part 3)
OSCE on anniversary of Sheremet murder calls on Kyiv to end impunity of journalists killers
Drop in Philip Morris Russian sales slows to 4.7% in Q2
Moscow seeks Washington's clarification of reports on extension of Bout's sentence - Foreign Ministry
Int'l arbitration panel in Arctic Sunrise case encourages unlawful actions in Arctic - Russian Foreign Ministry (Part 2)
Putin congratulates Moscow Helsinki Group leader Alekseyeva in person on her 90th birthday
MICEX and RTS Indexes at 15:00 MSK
Rogozin to visit Moldova although he wasn't allowed to come aboard Russian Aerospace Forces plane
Sberbank appeals ruling in Transneft lawsuit over derivatives - court materials (Part 2)
Investigators believe 'Russian connection' in Sheremet killing is highly probable - Ukrainian Interior Ministry