In the international oil market, a new adjustment of black gold routes may occur. Kazakhstan is preparing to export its oil via Azerbaijan’s largest oil pipeline to circumvent Russia’s threat to close the Black Sea port of Novorossiysk.
After a Russian court threatened to cut off an oil route through which Kazakhstan exports black gold to the world, Astana is preparing to ship its oil from Azerbaijan’s largest oil pipeline as early as September, sources close to the case say, citing Reuters.
For about two decades, Kazakh oil, which accounts for 1% of the world’s oil reserves, was transported through the CPC (Caspian Pipeline Consortium) pipeline, which was sent to the Russian port of Novorossiysk on the Black Sea, from where the oil was shipped. the rest of the world.
However, in July a Russian court threatened to shut down the CPC pipeline to Kazakhstan, prompting the Astana government and foreign companies operating in the country’s oil sector to reach out to other possible partners to ensure that if Russia ceases to act as a bridge between Kazakhstan’s oil and the world There may be other transportation options.
Thus, one of the sources assured Reuters that the Kazakh oil company Kazmunaigas (KMG) is negotiating with the Azerbaijani side to export 1.5 million tons of oil per year through the Azerbaijani pipeline, which transports raw materials to the port of Ceyhan. , Turkey. The contract is to be signed in August, and oil on this route is to start in September.
However, these agreements may not be enough to ensure that the world receives the same number of barrels of oil from Kazakhstan as before Russia’s possible production cuts.
According to the British agency, this partnership will bring 30,000 barrels of oil per day to countries buying Kazakh oil, which is very small compared to the 1.4 million barrels per day currently transported by CPC.
In addition, two other sources report that Astana is in talks to have another 3.5 million tons of crude oil annually exported via another pipeline to the port of Supsa in the Black Sea region from Georgia starting next year. In a Reuters report, KMG representatives declined to comment on the issue.
Kazakhstan can make a difference in the uncertain future
By seeking to sign these agreements, Kazakhstan can not only ensure its own economic viability, but also ensure that the imbalance between supply and demand for oil on the international market does not worsen.
Oil consumption is expected to rise to 2.1 million barrels a day this year, up 300,000 barrels from the previous forecast, according to International Energy Agency data released this Thursday.