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)
July 24, 2014
VTB 24 forecasts higher net profit in 2014
Russia still has no Kyiv answers about Malaysian Boeing crash - Defense Ministry
Russia may ban Ukrainian powdered milk and dry whey imports
Attention subscribers: Press conference of Israeli foreign minister at Interfax
Russian Post signs deal with Ebay to optimize deliveries
Nine instances of gunfire from Ukraine against Russian territory registered in June and July - Defense Ministry
Russian agriculture watchdog may allow pork imports from South Korea
U.S. has not provided a single piece of evidence of militia role in Malaysian Boeing crash - Russian Defense Ministry
Economy ministry says European businessmen are showing interest in Crimean infrastructure
European Parliament's GUE/NGL urges Kyiv not to ban Ukraine Communist Party
Moscow press review for July 24, 2014
RUSSIA REGISTERED NINE INSTANCES OF GUNFIRE AGAINST ITS TERRITORY IN JUNE AND JULY - DEFENSE MINISTRY
U.S. HAS NOT PRESENTED A SINGLE PIECE OF EVIDENCE OF MILITIA INVOLVEMENT IN MALAYSIAN BOEING CRASH - RUSSIAN DEFENSE MINISTRY