All Things Newz
Business

Russian, Kazakh crude exports hit by CPC terminal repairs


Article content

Russian and Kazakh oil exports via the Caspian Pipeline Consortium’s (CPC) Black Sea terminal face at least one month’s disruption each once repairs begin on two of its three single mooring points (SPMs), CPC confirmed on Tuesday.

Oil exports via the two SPMs have been suspended due to equipment damaged by bad winter weather, CPC said on Monday, confirming a Reuters report on Saturday.

CPC added that a planned inspection of the third SPM at the Yuzhnaya Ozereyevka terminal would require it to be temporarily shut for a matter of hours. It said it was negotiating with shippers to shift loading schedules in order to complete the inspection by August 26.

Article content

CPC added the one-month maintenance estimate for each of the two SPMs affected was approximate and may be adjusted and that it was currently looking for a firm to start the work.

Two SPMs at the terminal in March were damaged in a storm and returned to service in April.

The terminal handles about 1% of global oil supply and is the main route for most of Kazakhstan’s oil exports.

The third mooring point is working in an “intensive mode,” the consortium said, and will be able to load up to 3.5 million tonnes of oil per month.

That is 60-70% of the terminal’s normal capacity, according to Reuters calculations.

The CPC Blend loading plan for August was set at 5.026 million tonnes, while September’s was set at 5.153 million tonnes. The plans will now have to be revised.

Article content

The largest oil supplier via CPC, Chevron-led Tengizchevroil (TCO), said its loadings via the route were “currently uninterrupted.” TCO lowered output on its Tengiz oilfield in August due to planned maintenance, which is scheduled to finish in September.

The other major supplier via CPC pipeline, Kazakhstan’s Kashagan oilfield, also cut output in August due to a gas leak early in the month and was gradually raising production.

The main shareholders in CPC are Russian pipeline operator Transneft with a 24% stake, Kazakhstan’s KazMunayGas with 19%, and the Chevron Caspian Pipeline Consortium Company with 15%.

Others include LUKARCO B.V (12.5%), Mobil Caspian Pipeline Company (7.5%), Rosneft-Shell Caspian Ventures Limited (7.5%) and Eni International (N.A.) N.V. S.a.r.l. (2%).

(Reporting by Reuters; editing by Kirsten Donovan and Jason Neely)



Source link

Related posts

Turkish Inflation Quickens Less Than Expected to 78.62%

Germany heading for recession despite new relief plan – economists

Japanese shares fall to two-month low ahead of BOJ decision