Kazakhstan eyes Baku-Supsa pipeline for oil exports despite CPC's stronghold

Kazakhstan is continuing discussions on the possibility of transporting oil via the Baku-Supsa pipeline route, according to the country’s Minister of Energy Almassadam Satkaliyev.

Satkaliev made the statement during a report presented at a government session, Caliber.Az reports.

"The possibilities of the Baku-Supsa pipeline are being considered. Its capacity is 5 million tonnes per year, with potential delivery volumes of up to 3 million tonnes per year. The use of this route is currently under development and discussion," said Satkaliyev.

The Minister also reaffirmed that the Caspian Pipeline Consortium (CPC) remains Kazakhstan's most reliable oil export route.

"Currently, the CPC is the most reliable and efficient route for exporting Kazakhstan's oil. Technical capacity has been enhanced, with throughput increased from 67 to 81.5 million tonnes per year, including on the Kazakh section, which has been raised from 53.7 to 72.5 million tonnes per year," he added.

Satkaliev further highlighted that Kazakhstan's total oil export target for 2024 stands at 68.8 million tonnes. In comparison, the country exported 70.5 million tonnes of oil last year, with an overall production of 90 million tonnes.

The Minister outlined the primary export routes for 2024, which include the Caspian Pipeline Consortium (55.4 million tonnes), the Atyrau-Samara pipeline (8.6 million tonnes), China (1.1 million tonnes), the port of Aktau (3.6 million tonnes), and rail transport (50,000 tonnes).

To recall, the Baku-Supsa pipeline, a key route for transporting oil from Azerbaijan’s Chirag field, has been operational since the spring of 1999. However, in March 2022, in response to the military conflict between Russia and Ukraine, which led to a reduced number of tankers in the Black Sea, Azerbaijan made the decision to reroute all its oil exports via the Baku-Tbilisi-Ceyhan pipeline.

The history of the Baku-Supsa pipeline can be traced back to March 8, 1996, when former Azerbaijani President Heydar Aliyev and former Georgian President Eduard Shevardnadze signed a landmark agreement in Tbilisi to construct the pipeline.

The agreement, involving Amoco, SOCAR, and the Georgian government, established the transportation of oil from Azerbaijan's Azeri-Chirag-Deepwater Gunashli (ACG) field. The pipeline was officially launched on April 17, 1999, at the Supsa terminal. This route marked a significant milestone as the first to bypass Russian territory, allowing Azerbaijan to cut transportation costs compared to the Baku-Novorossiysk route.

Spanning 837 km, the pipeline has a capacity to transport over 7 million tonnes of oil per year (approximately 145,000 barrels per day). Initially, the pumping capacity was set at 6 million tonnes, with the Baku-Novorossiysk route handling just 2.5 million tonnes per year.

Over the years, the Baku-Supsa pipeline has faced several interruptions. In 2006, the pipeline was shut down for nearly two years for repairs, while in 2008, pumping was halted for a month due to the war in Georgia. A portion of the Georgian segment passed through occupied territories, with part of the pipeline under the control of separatist forces. The third stoppage occurred in March 2022.

By Aghakazim Guliyev