Kazakhstan reroutes Kashagan oil to China after Black Sea pipeline damage

Kazakhstan is redirecting a portion of Kashagan oil exports to China due to the limited operational capacity of the Caspian Pipeline Consortium (CPC), which continues to operate through only one loading point, Kazakh media reported.

According to the latest data by Reuters, 50,000 tons of oil will be shipped to China in December, marking the first direct deliveries from Kashagan via the Atasu–Alashankou pipeline.

The move comes after a Ukrainian drone attack damaged the CPC’s marine terminal in the Black Sea, leaving the consortium with just one functional loading point. VPU-2 suffered significant damage, while VPU-3 is undergoing scheduled maintenance. CPC accounts for roughly 1% of global oil exports and counts Russia, Kazakhstan, and the United States among its shareholders.

CNPC is expected to ship approximately 30,000 tons of oil, while Inpex will send around 20,000 tons. Both companies are part of the North Caspian Operating Company (NCOC) consortium, which develops the Kashagan field. No official statements have been released by either company, though Kazakhstan’s Ministry of Energy confirmed that the country is actively exploring alternative export routes for Caspian oil.

The Atasu–Alashankou pipeline connects Kazakhstan with China’s Xinjiang region and typically carries crude from other fields. Kashagan, in contrast, traditionally exports its oil primarily through the CPC terminal in Novorossiysk.

Current shipments along the Atasu–Alashankou route stand at 85,000–86,000 tons per month. Sources indicate that Kazakhstan had planned to transport one million tons via this pipeline in 2025, below the 1.2 million tons exported in 2024. During the first ten months of 2025, approximately 0.85 million tons were already shipped along this route.

Kashagan, one of the largest oil and gas fields discovered in the past 40 years, is located in the northern Caspian and named after 19th-century poet Kashagan Kurzhimanuly.

Earlier reports suggested that the damaged CPC terminal will not return to full operational capacity until December 11. Repairs to VPU-2 could take several months, while VPU-3 is delayed due to weather conditions and ongoing diving operations.

Oil and gas condensate production in Kazakhstan fell by 6% during the first two days of December. Sources attributed this decline to CPC operating with only one active VPU, which has reduced throughput. As a result, Kazakhstan is rerouting volumes to alternative pipelines, which offer lower profit margins.

By Tamilla Hasanova