Kazakhstan Investigates Potential Oil Export Pathway through Baku-Supsa Pipeline Network
In a significant move towards diversifying its energy supply channels, Kazakhstan is considering a new oil export route, with the first shipment of 85,000 tons of crude oil set to be delivered to Hungary. This new route, if established, will supplement Kazakhstan's existing oil suppliers.
The potential oil export route is not specified to be transported through the Baku (Azerbaijan)-Supsa (Georgia) pipeline corridor, although discussions about transporting Kazakhstan's crude oil through this corridor have been ongoing. The Baku-Supsa pipeline, which has a capacity of about 6 million tons per year, offers a strategic link to the Black Sea, enabling Kazakhstan to reach alternative global markets beyond Russian-controlled routes.
However, the Baku-Supsa pipeline has been largely idle since spring 2022 and would require port modernization and increased tanker capacity to handle more volume. These logistical and infrastructural challenges are part of the ongoing discussions regarding the use of this corridor.
The establishment of agreements between relevant economic entities will be a determining factor in the development of this oil export route. The Energy Ministry of Kazakhstan has provided a statement regarding the potential oil export route, but the specific details of these agreements are not yet known.
Meanwhile, Kazakhstan has already begun shipping Tengiz oil via the Baku-Tbilisi-Ceyhan (BTC) pipeline, a related route, with plans to gradually increase transit volumes up to 2.2 million tons per year. This move highlights growing Kazakhstan-Azerbaijan cooperation on oil transit.
The first shipment of Kazakh oil to Hungary will be delivered to the Százhalombatta refinery. This move is part of Kazakhstan’s President Tokayev’s push for the diversification of export routes, following Russia’s temporary restrictions and disputes over pipeline use.
Sources:
- Reuters
- Trend News Agency
- LS Aqparat News Agency
- OilPrice.com
- The Diplomat
The Energy Ministry of Kazakhstan is engaged in discussions to potentially transport oil through the Baku-Supsa pipeline corridor, which, if modernized and equipped with increased tanker capacity, could provide an alternative route to the Black Sea and Global finance markets, facilitating the oil-and-gas industry's diversification strategy. Notably, Kazakhstan is already utilizing the Baku-Tbilisi-Ceyhan pipeline for Tengiz oil transit, signifying growing cooperation in the industry between Kazakhstan and Azerbaijan, as a component of the ongoing efforts to diversify its energy supply channels in the face of financial and political challenges within the industry.
