Investment sought for Kazakhstan tanker terminal

Apr 02 2023


Investment and customer commitments are being sought for a tanker terminal at the port of Kuryk, Kazakhstan to carry oil from Kazakh oilfields across the Caspian Sea to Baku.

From Baku, oil can reach international markets via the Baku–Tbilisi–Ceyhan (BTC) pipeline, which crosses Azerbaijan, Georgia and Turkey to the Mediterranean.

The BTC pipeline was built to carry oil from Azerbaijani oilfields, offshore but on the West of the Caspian Sea, to international markets.

Oil and gas companies in Kazakhstan are showing a reluctance to provide annual volume commitments, says Semurg Invest, the project developer and operator of Kuryk port. This includes Shell, Chevron, ExxonMobil, ENI and Inpex. The terminal could be built with under $100m investment. If the companies would commit to using the terminal it would encourage others to invest.

Currently, about 80 per cent of Kazakh oil reaches international markets via the Caspian Consortium Pipeline, which runs through Russia to the Black Sea port of Novorossiysk, which is under 100 miles from Crimea. Oil and gas companies in Kazakhstan need to pay Russia to transport their oil. All Kazakh exports to the west go through Russia via various routes.

This exposes them to the possibility of war related disruption. During 2022, Russia began disrupting flows through the pipeline. It cited technical and regulatory issues. The disruption was interpreted by many experts as a warning from Russia that Kazakhstan should stay silent about the war or face economic disruption, according to news reports.

Oil sales account for 60 per cent of Kazakhstan's export revenue and a fifth of the country’s GDP. Kazakhstan is keen to increase the country's export capacity through the Caspian Sea to 400,000 barrels a day / 20m metric tons per year. The BTC pipeline has a capacity of 1.2m barrels a day.

The first part of the project at the Kuryk port is to build a grain terminal, expected to be operational by early April 2023. This will provide a route for grain out of the region to Middle Eastern and African countries. The terminal already has rail links and power supplies.

In December 2022, UAE based port operator AD Ports Group signed an agreement to set up a joint venture with KMTF (Kazmortransflot), a offshore logistics and services subsidiary of the Kazakh National Oil Company (KazMunayGas). The joint venture will operate offshore vessels and tankers, including in the Caspian Se. It will be 51 per cent owned by AD Ports Group.

 



Previous: The Emergence of New Tanker Market Players

Next: Wärtsilä Cargo Handling and Fuel Gas Supply systems continue to be the choice for ethane carriers


Related News

PETRONAS Marine and Titan LNG partner again for another successful STS

(Apr 14 2022)

World-leading independent alternative fuels supplier, Titan LNG has partnered with PETRONAS Marine – the marine solutions arm of energy multinational, PETRONAS, to deliver LNG under a Term Supply Agreement to VLCC Yuan Rui Yang, chartered by Koch Ind...



UN says agreement in principle on Yemen tanker oil transfer

(Feb 17 2022)

An agreement has been reached in principle on a U.N.-coordinated proposal that would transfer more than 1 million barrels of crude oil from a tanker that has been moored off the coast of war-torn Yemen since the 1980s to another ship.



SafeSTS & Gall Thomson launch active emergency release system for ‘Vision Zero’

(Sep 16 2021)

Unexpected mooring breakouts have always been recognized as the biggest risk during offshore STS operations. From developing new ways to mitigate the risks to crew at the mooring stations and the hose manifolds, as well as to the environment, from un...



SafeSTS pioneers step-change in ‘green’ technology for ship-to-ship transfers

(Aug 12 2021)

A revolutionary new ship-to-ship cargo transfer system has been developed and patented by SafeSTS for the Dynamic Positioning (DP) shuttle tankers sector.



Tanker stopped for attempting illegal ship-to-ship fuel transfer in Eastern Johor

(Aug 02 2021)

The Malaysian Maritime Enforcement Agency (MMEA) stopped a tanker for attempting an illegal ship-to-ship fuel transfer in the eastern Johor waters.



Jun-Jul 2024

Tanker Operator Athens report: managing crewing, training challenges, views on SIRE 2.0