Official: Kazakhstan ready to boost oil transit via Baku–Tbilisi–Ceyhan pipeline

Kazakhstan is ready to significantly increase oil transit volumes through the Baku–Tbilisi–Ceyhan (BTC) pipeline in a short period of time, but tariff negotiations remain a key factor, Kazakhstan’s Energy Minister Yerlan Akkenzhenov said on the sidelines of the 31st Baku Energy Forum.

He said that SOCAR and Kazakhstan’s national company KazMunayGas (KMG) should begin negotiations to reduce tariff components in order to increase Kazakh oil exports, Caliber.Az reports via local media.

"An agreement has already been signed between our sides, providing for the transportation of 1.5 million tons of oil through the Baku–Tbilisi–Ceyhan pipeline, while the protocol foresees volumes of up to 2.2 million tons. The Kazakh side is ready to increase volumes and can do so in a very short time. However, the key issue remains negotiations between SOCAR and KMG regarding tariff reductions," he said.

Akkenzhenov noted that Kazakhstan is capable of increasing volumes quickly, but economic feasibility remains the determining factor.

He also said Kazakhstan is open to joint projects with Azerbaijan, particularly in the petrochemical sector, and would support any mutually beneficial initiatives.

On the issue of synchronisation of energy systems between Azerbaijan and Central Asian countries, he stressed that no interconnectors currently exist between Kazakhstan and Azerbaijan, meaning their power grids are not physically linked.

He added that the priority is building physical infrastructure first, while projects such as the "green energy cable" are primarily related to exporting renewable electricity and require balancing mechanisms.

According to him, such balancing could be provided through energy storage systems or hydropower resources, with Kyrgyzstan potentially acting as a balancing provider if its capacity is expanded.

By Sabina Mammadli