oil export - The Times Of Central Asia

Viewing results 1 - 6 of 26

KazTransOil

KazTransOil Opens First EU Office in Poland to Boost Oil Transit and Exports

Kazakhstan’s national oil pipeline operator KazTransOil has announced the opening of its first representative office in the European Union, selecting Poland as the location. The decision, approved by the company’s board of directors, aims to strengthen Kazakhstan’s presence in European energy markets, the company said in a statement. The new office will focus on protecting KazTransOil’s commercial interests in Poland and facilitating the transit of Kazakh crude oil through Belarus and Poland. It will also oversee the handover of oil at the Adamova Zastava delivery point on the Belarusian-Polish border, from where it is transported to the Schwedt refinery in eastern Germany. KazTransOil stated that the move is intended to expand alternative export routes, enhance supply reliability, and reinforce Kazakhstan’s role as a strategic energy partner to Europe. The expansion comes amid deepening oil cooperation between Kazakhstan and European countries. On December 18, KazTransOil and Russia’s state-owned pipeline operator Transneft signed a transit agreement for 2026, allowing Kazakh oil to continue flowing through Russian territory. While specific volumes were not disclosed, the agreement covers shipments to Russian ports such as Novorossiysk and Ust-Luga, and to the Russia-Belarus border for onward delivery to EU countries. Germany, in particular, has ramped up imports of Kazakh oil as part of its broader effort to reduce reliance on Russian energy. Following the 2022 invasion of Ukraine and subsequent EU sanctions, Berlin halted Russian oil imports and began receiving regular shipments of Kazakh crude in 2023. In 2024, Germany imported 1.5 million tons of Kazakh oil and plans to increase that to 1.7 million tons in 2025, with a long-term target of 2.5 million tons annually. In October 2025, KazMunayGas, Kazakhstan’s national oil and gas company, signed an updated agreement with Rosneft Deutschland GmbH to extend oil supply arrangements through the end of 2026. The revised deal boosts monthly deliveries from 100,000 to 130,000 tons. Additional volumes are expected from the Karachaganak field, while supplies from the Kashagan and Tengiz fields are set to begin in 2024 and 2025, respectively. According to KazMunayGas, approximately 1.5 million tons of Kazakh oil were delivered to the Schwedt refinery between January and September 2025. Rosneft Deutschland GmbH, which holds a stake in the refinery, remains under German government trusteeship as part of Berlin’s effort to minimize exposure to Russian energy assets. Deliveries of Kazakh oil to Europe are conducted via the Druzhba pipeline. Originating in Samara, Russia, the pipeline splits near Bryansk and Mozyr into two branches: the northern route through Belarus and Poland to Germany, and the southern route through Ukraine to Hungary, Slovakia, and the Czech Republic.

Oil and Gas

Kazakhstan Boosts Oil Output Despite Export Infrastructure Challenges

Kazakhstan increased its production of oil and gas condensate by 14% in January-November 2025 compared to the same period last year, and exceeded its annual export plan ahead of schedule, despite ongoing disruptions in the Caspian Pipeline Consortium (CPC). The figures were announced by Deputy Minister of Energy Sungat Yessimkhanov. By the end of 2024, Kazakhstan had produced 87.7 million tons of oil and gas condensate, 97.1% of its target of 90.5 million tons. Total oil exports for the year reached 63.2 million tons. In the first 11 months of 2025, production rose to 91.9 million tons, marking a 14.1% year-on-year increase. The full-year target for 2025 is 96.2 million tons. Over the same period, exports amounted to 73.4 million tons, already surpassing the annual target of 70.5 million tons and representing a 16.1% increase from the previous year. This growth came despite serious challenges to Kazakhstan’s main export route. The CPC, which carries the bulk of Kazakh crude to international markets, experienced disruptions following a drone attack on its infrastructure. The incident raised fresh concerns about the vulnerability of critical export corridors. In the gas sector, Kazakhstan produced 62.8 billion cubic meters of natural gas in January-November 2025, a 16.7% increase from the same period in 2024. The annual gas production target for 2025 has already been met. Liquefied petroleum gas (LPG) production rose to 2.8 million tons, up 1.8%. Gas transit volumes through Kazakhstan reached 64.5 billion cubic meters, up 0.9%. During the same period, domestic production of petroleum products reached 14 million tons. The full-year target is 14.5 million tons, on track to match the 2024 total, when 17.9 million tons of crude were processed domestically. Production of oil and gas chemical products increased by 12.2%, reaching 567,600 tons. The target for 2025 is set at 590,000 tons. As previously reported by The Times of Central Asia, Kazakh authorities are actively seeking foreign investment for the construction of a fourth major oil refinery with a projected capacity of up to 10 million tons per year. Overall, Astana plans to attract between $15 billion and $19 billion in investment for the development of the oil refining sector by 2040.

Caspian Pipeline Consortium

Kazakhstan Fast-Tracks Delivery of Caspian Pipeline Equipment

Kazakhstan has expedited the delivery of two new offshore berthing facilities for the Caspian Pipeline Consortium (CPC), a move prompted by recent drone attacks on CPC infrastructure. The initiative aims to restore the stability of oil exports and ensure uninterrupted operations at the key marine terminal in Novorossiysk. The two new remote mooring devices (RMDs) were procured from a manufacturer in the United Arab Emirates for installation at the CPC Marine Terminal. Kazakhstan’s Energy Minister Yerlan Akkenzhenov announced on December 15 in Astana that the delivery timeline has been moved up from April 2026 to January 2025. “The Ministry of Energy of the Republic of Kazakhstan and the national oil and gas company KazMunayGas are making every effort to deliver the two new RMD units. We are now pushing ahead with this and plan to deliver them in January,” said Akkenzhenov, highlighting the logistical complexity of transporting the technologically advanced equipment to Novorossiysk. According to the CPC press service, the two devices being replaced, CPC-1 and CPC-2, were originally commissioned in 2001. The contract for their replacement was signed in January 2024, and both new units are expected to be completed by December 2025. These upgrades are part of a recovery program following a series of attacks on CPC infrastructure. At the same time, repair work continues on VPU-3, another remote berthing facility. However, efforts have been hindered by severe weather conditions in Novorossiysk, where strong winds and currents have disrupted underwater installation work. “The weather in Novorossiysk is difficult, with very strong winds causing high waves and currents. Divers are descending under the dome to install underwater hoses,” Akkenzhenov explained. The Caspian Pipeline Consortium remains one of the largest energy projects in the post-Soviet space. The 1,511 kilometer Tengiz-Novorossiysk pipeline transports more than two-thirds of Kazakhstan’s oil exports, along with output from Russian fields, including those in the Caspian Sea. The CPC’s marine terminal in Novorossiysk is equipped with three remote mooring devices, enabling tankers to load safely offshore and ensuring continuous export operations. Since autumn 2025, CPC facilities have been repeatedly targeted. The first attack occurred on September 24, when drones struck the consortium’s office, injuring employees and bystanders. Other key incidents included attacks on the Kropotkinskaya base (February 17 and March 24), the Kavkazskaya facility (March 19), and the Novorossiysk marine terminal (September 24-25). The most serious incident occurred on November 29, when the terminal’s pier was damaged, rendering VPU-2 inoperable. Kazakhstan’s Ministry of Energy estimated losses of 480,000 tons of oil and condemned the attack as “unacceptable and dangerous for global energy security.” The emergency acquisition and fast-tracked delivery of the new berthing units are seen as a strategic investment by Kazakhstan, not only to secure its export capacity but also to reinforce the stability of one of the region’s most critical energy corridors.

oil export

Kazakhstan Looks to Reduce Dependence on Russian Oil Transit Routes

Escalating drone attacks on Russian infrastructure amid the ongoing war in Ukraine, including key facilities in Novorossiysk and the Orenburg region, are compelling Kazakhstan to accelerate its search for alternative oil export routes. In this context, the Caspian Pipeline Consortium (CPC), which transits Russian territory, is increasingly viewed as an unreliable option for transporting the country’s crude oil. In November, damage to the VPU-2 single-point mooring at the Yuzhnaya Ozereyevka terminal near Novorossiysk disrupted operations. Only VPU-1 remains functional, while VPU-3 is undergoing scheduled maintenance. As a result, CPC oil shipments have dropped. The pipeline accounts for over 80% of Kazakhstan’s oil exports, more than 1% of global production. The Kazakh Ministry of Energy clarified that exports were not fully halted and that efforts are underway to reroute shipments. First Kashagan Oil Shipment to China via Atasu-Alashankou On December 8, Reuters reported that Kazakhstan would begin exporting oil from the Kashagan field directly to China for the first time via the Atasu-Alashankou pipeline. The route, which leads to Xinjiang, has previously been used for other fields but not for Kashagan. According to the report, Kazakhstan plans to export 50,000 tons of crude oil through this channel. Of that, the Chinese oil company, China National Petroleum Corporation (CNPC), will receive approximately 30,000 tons, while Japan’s Inpex will take 20,000 tons. Although the pipeline’s annual capacity is around 10 million tons, it has been operating below capacity, averaging 85,000-86,000 tons per month. The Kazakh government had initially planned to ship 1 million tons via this pipeline in 2025, less than the 1.2 million tons exported in 2024. In the first ten months of 2025, shipments reached 858,000 tons, according to industry sources. Kashagan is among Kazakhstan’s most strategic assets and one of the largest oil and gas fields discovered globally in the past 40 years. Operated by the NCOC consortium, which includes ExxonMobil, Shell, TotalEnergies, CNPC, Inpex, and KazMunayGas, the field produces more than 15 million tons of oil annually. Until now, nearly all of this was transported via the CPC. Redirecting Oil Amid Infrastructure Damage On December 10, KazTransOil, the national oil pipeline operator, announced that it had redirected oil exports from the CPC system to alternative routes. In December 2025 alone, an additional 360,000 tons of oil are expected to be exported to Russia (via Samara), China, and across the Caspian Sea. Increases in exports from the original plan include: Atyrau-Samara pipeline: +232,000 tons; To China: +72,000 tons; and through the port of Aktau to the Baku-Tbilisi-Ceyhan (BTC) pipeline: +58,000 tons. KazTransOil has also stated it will allow oil companies to temporarily store oil at its tank farm. This would enable greater flexibility in shipment scheduling, optimize pipeline operations, and help maintain uninterrupted deliveries. Rail transport is also being considered to further diversify logistics. In 2024, Kazakhstan exported 54.9 million tons of oil through the CPC. Additional exports included 8.8 million tons via the Atyrau-Samara pipeline, 3.6 million tons via Aktau, and 1.2 million tons to China via Atasu-Alashankou. The BTC...

Oil

Kazakhstan Begins Oil Exports to Hungary

Kazakhstan has shipped its first batch of crude oil to Hungary, marking a significant step in the deepening energy partnership between KazMunayGas (KMG), the country’s national oil and gas company, and Hungary’s MOL Group. According to KMG, 85,000 tons of crude were transported by sea from the Russian port of Novorossiysk to the Croatian port of Omisalj aboard the Alatau tanker, operated by Kazmortransflot, a KMG subsidiary. From there, the oil was transported via the Adriatic pipeline, operated by JANAF, Croatia’s state oil pipeline operator, to the Százhalombatta refinery in Hungary. Upon the tanker's arrival in Croatia, representatives of KMG, MOL Group, and JANAF convened to discuss further cooperation. Following the meeting, KMG and MOL Group signed a framework agreement outlining future oil supply arrangements. The deal broadens the scope of Kazakhstan’s oil exports to the European Union. Kazakhstan already supplies crude to Germany via the Druzhba (Friendship) pipeline, which runs through Russian territory. As previously reported by The Times of Central Asia, Kazakhstan and Hungary reached a preliminary agreement earlier this year to supply Kazakh oil to Hungary through the Druzhba pipeline as well. The agreement was concluded in February during a meeting in Astana between Kazakhstan’s Minister of Energy, Almasadam Satkaliyev, and Hungarian Minister of Foreign Affairs and Trade, Péter Szijjártó. The two sides agreed to conduct trial shipments in 2025. MOL Group has been active in Kazakhstan for over two decades and has invested $200 million in the development of the Rozhkovskoye gas condensate field in western Kazakhstan.

Oil Transit

Russia Seeks to Boost Oil Transit to China via Kazakhstan

Russia has proposed increasing its oil transit to China through Kazakhstan's Atasu-Alashankou pipeline by 2.5 million tons annually, Kazakhstan’s Energy Minister Yerlan Akkenzhenov announced at a recent government briefing. The initiative was submitted by Russian pipeline operator Transneft and is currently under review by Kazakhstan-China Pipeline LLP, which oversees the Atasu-Alashankou route. The Kazakh operator is KazTransOil JSC, while the Chinese side is represented by CNODC (China National Oil and Gas Exploration and Development Corporation). “Preliminary studies have begun. We expect to soon determine whether additional oil pumping stations are required or if the increased volume can be handled using specialized additives,” Akkenzhenov said. The Atasu-Alashankou pipeline spans 965 kilometers and has a design capacity of 20 million tons per year. It facilitates the export of both Kazakh and Russian crude to China. In 2024, roughly 10 million tons of Russian oil were transported through this route, generating an estimated $150 million in transit fees for Kazakhstan, calculated at $15 per ton. If approved, the volume of Russian oil transported via this corridor could rise to 12.5 million tons annually. Akkenzhenov also noted that Kazakhstan plans to expand oil exports via the Baku-Tbilisi-Ceyhan (BTC) pipeline. “Last year, we shipped approximately 1.4 million tons through the BTC. In 2025, we aim to increase this to 1.7 million tons. So far this year, about 800,000 tons have already been transported,” he said. The BTC pipeline, with a design capacity of 50 million tons per year, currently accommodates a Kazakh quota of 1.5 million tons. In 2022, Azerbaijan expressed willingness to raise this quota to 2.2 million tons. The prospect of increasing Kazakh oil flows through the BTC was also discussed during a bilateral meeting between President Kassym-Jomart Tokayev and Turkish President Recep Tayyip Erdoğan in Ankara.