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 firstname.lastname@example.org)
October 20, 2016
Russian Navy's surface action group can reach Mediterranean in 2 weeks - Admiral Popov (Part 2)
Matviyenko underlines importance of developing relations with Switzerland for Russia
Lavrov, Kerry discuss Syria during 60th telephone conversation since start of this year (Part 2)
Three Russian officers injured in Aleppo - Russian reconciliation center (Part 2)
Militants in Aleppo publicly execute 14 local officials for calls to leave eastern parts of city - Russian center for reconciliation
Lavrov, Kerry discuss Syria during 60th telephone conversation since start of this year
Naftogaz says has sufficient natural gas stocks to safely go through cold season
LAVROV IN TELEPHONE CONVERSATION WITH KERRY SAID MILITANTS ARE DISRUPTING CEASEFIRE IN ALEPPO, OBSTRUCTING EVACUATION OF CIVILIANS, REMINDS OF U.S. PLEDGE TO SEPARATE OPPOSITION FROM TERRORISTS
LAVROV, KERRY DISCUSS IN TELEPHONE CONVERSATION WAYS TO NORMALIZE SITUATION IN EASTERN ALEPPO - RUSSIAN FOREIGN MINISTRY
NATO supports 'Normandy format's drafting of roadmap to implement Minsk Agreements - Stoltenberg
Eight injured militants leave eastern Aleppo on first day of humanitarian pause - Russian center for reconciliation
Three Russian army officers injured in Aleppo - Russian center for reconciliation
ALEPPO MILITANTS PUBLICLY EXECUTE 14 MEMBERS OF EASTERN ALEPPO AUTHORITIES FOR CALLS TO LEAVE CITY - RUSSIAN CENTER FOR RECONCILIATION
Russian Investigative Committee interrogates over 50 Russian athletes, coaches, managers in probe into violations of anti-doping rules (Part 2)