Kazakhstan suspends oil supplies to Black Sea terminal
Photo: The Caspian Pipeline Consortium terminal near Novorossiysk (wikipedia.org)
Kazakhstan has been forced to suspend crude oil shipments to its main export terminal due to security concerns linked to the terminal’s location and the tankers operating there, Bloomberg reports.
Kazakhstan suspends oil supplies to CPC terminal
A series of attacks on oil tankers in the Black Sea is putting Kazakhstan’s oil exports at risk, according to the outlet.
"The Caspian Pipeline Consortium terminal near the Russian port of Novorossiysk was set to stop accepting piped supplies because tanker companies are too nervous to send their ships to the facility," two sources familiar with the matter reported.
Kazakhstan's oil production
Oil producers in Kazakhstan will also be forced to reduce output if pipeline deliveries to the Caspian Pipeline Consortium (CPC) terminal remain suspended until the end of this week, sources told Bloomberg.
These disruptions come amid a near-total halt in crude oil shipments through the Strait of Hormuz, as hostilities between the US and Iran have resumed and Yemen’s Houthis threaten Saudi exports from the Red Sea.
What is the CPC terminal?
The CPC terminal is Kazakhstan’s main oil export route, handling about 80% of the country’s crude oil exports.
Most of the oil transported through the pipeline comes from projects operated in partnership with major international energy companies, including:
- Chevron Corp.
- ExxonMobil Holdings Corp.
- Shell Plc.
The risks of a supply suspension
Kazakhstan is Europe’s second-largest oil supplier, and any reduction in its exports would put additional pressure on regional refineries as they seek alternatives to crude supplies from the Persian Gulf, Bloomberg reported.
Ukraine has not claimed direct responsibility for the attacks, which involved Western vessels. However, several strikes targeting unidentified oil tankers in the Black Sea have been reported in recent days, according to the outlet.
"Although the CPC terminal is in Russia, exports from the facility are not under Western sanctions," Bloomberg noted.
Earlier this month, Kazakhstan restricted vehicles from crossing its borders more than once a day to curb large-scale fuel outflow from the country.
In late June, Kazakhstan was also forced to cut oil production after operations at Russia’s Orenburg gas processing plant were suspended.
