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Kazakhstan weighs major boost in Baku-Tbilisi-Ceyhan oil exports

by Daily Sabah

ISTANBUL Nov 25, 2024 - 3:56 pm GMT+3
The Haydar Aliyev Marine Terminal, the last stop of the BTC pipeline before crude oil is delivered to global markets, in Adana province, southern Türkiye, June 2, 2020. (AA Photo)
The Haydar Aliyev Marine Terminal, the last stop of the BTC pipeline before crude oil is delivered to global markets, in Adana province, southern Türkiye, June 2, 2020. (AA Photo)
by Daily Sabah Nov 25, 2024 3:56 pm

Kazakhstan is considering a substantial increase in its oil shipments out of Türkiye's port of Ceyhan through the Baku-Tbilisi-Ceyhan (BTC) pipeline, Kazakh Energy Minister Almasadam Satkaliyev announced on Monday.

The volume is envisaged to be raised to 20 million tons per year, Satkaliyev told parliament. That move could reduce the more than 80% share of flows Kazakhstan currently sends via Russia.

"This year, Kazakh oil transported through the BTC pipeline is expected to be around 1.5 million tons. We are evaluating the prospects of increasing this volume to 20 million tons per year in the future," he stated.

He did not provide an exact time frame.

"There is interest in developing and gradually increasing the volume of Kazakh oil shipments in this direction both on our side and from the Azerbaijani partners," said Satkaliyev.

Kazakhstan sends crude by tanker across the Caspian Sea for export via the BTC, which was inaugurated back in mid-2006.

The pipeline stretches from the Caspian Sea coast near Azerbaijan's capital, Baku, and traverses neighboring Georgia before going on to Türkiye, where it ends in the province of Adana on the Mediterranean Sea coast.

Satkaliyev described the BTC pipeline as a "promising route."

He highlighted the significant role of oil and gas in Kazakhstan's economy, noting that more than 28% of the state budget comes from the sector.

For this year, Kazakhstan plans to produce 88.4 million tons of oil, with 68.8 million tons slated for export.

Satkaliyev also detailed the various pipelines through which Kazakh oil will be exported this year: 55.4 million tons via the Caspian Pipeline Consortium (CPC) pipeline to Russia's Black Sea port of Novorossiisk, 8.6 million tons through the Atyrau-Samara Pipeline also via Russia, 1.1 million tons by pipeline to China, and 3.6 million tons from the Aktau Port on the Caspian Sea.

Additionally, Kazakhstan will send 1.4 million tons of oil to Germany through the Druzhba pipeline.

Developing alternative transport routes for oil exports remains a strategic priority for the Kazakh government, according to Satkaliyev.

He emphasized ongoing efforts with KazMunayGaz, the national oil company, to enhance the Trans-Caspian International Transport Corridor.

Kazakh exports account for more than 1% of the world's supply.

From 2026, Kazakhstan aims to boost its annual oil production to 100 million tons, with a goal of meeting all domestic demand for gasoline, aviation, and diesel fuels by 2035.

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  • KEYWORDS
    oil exports oil baku-tbilisi-ceyhan pipeline kazakhstan türkiye azerbaijan georgia energy
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