Kazakhstan halts oil exports via Novorossiysk terminal again
Photo: The Caspian Pipeline Consortium (CPC) terminal near Novorossiysk, Russia (Russian media)
Drone strikes on a terminal in Russia have reduced exports of Kazakh oil through the facility to zero — for the third time this month, Reuters reports.
Kazakhstan suspends oil exports via CPC
Kazakhstan's main oil export terminal on the Black Sea shut down again on July 30. Crude oil tanker loading was suspended after two vessels were hit at and near the terminal in the Russian port of Novorossiysk, the publication reported.
The Caspian Pipeline Consortium (CPC), which owns the terminal and pipeline, made the announcement just two days after operations resumed following a week-long shutdown.
According to Reuters, the CPC handles 80% of Kazakhstan's oil exports.
Strikes on CPC
Previous suspensions of export loadings forced Kazakhstan to temporarily cut oil production, as there is no easy alternative route for delivering crude to global markets.
According to the CPC, two tankers — the Marshall Islands-flagged Nissos Sifnos and the Isle of Man-flagged Marathi — were attacked by Ukrainian drones overnight. A fire broke out aboard the Nissos Sifnos while it was loading at the terminal.
Kazakhstan's Energy Ministry confirmed the strikes but did not blame Ukraine.
Ukraine's Unmanned Systems Forces said they struck four Russian tankers in the Black and Azov seas overnight, but did not specify their locations, the publication noted.
At least five tankers that had previously listed the CPC terminal as their destination changed course to Turkey, Spain, or switched their status to "for orders," according to LSEG shipping data.
Why CPC matters to Kazakhstan
Kazakhstan is Central Asia's largest economy and a major producer of energy and mineral resources. The country accounts for about 2% of global daily oil supplies, with most of its exports destined for Europe.
The 1,510-kilometer CPC pipeline is one of the longest in the world. US companies, including Chevron and ExxonMobil, provided nearly half of the $2.6 billion invested in its construction.
The largest shareholders in the CPC are:
- Transneft
- KazMunayGas
- Chevron
Alternative export routes are limited. Westbound shipments via the Caspian Sea to Azerbaijan and onward to Turkey, as well as eastbound pipeline routes to China, face capacity constraints.
On July 21, Kazakhstan was forced to halt crude oil deliveries to its main export terminal due to issues related to the terminal's location and tanker operations.
Russia is also in talks with Kazakhstan about importing a large volume of gasoline, although Astana has reportedly set strict conditions for any deal.
