Kazakhstan and Azerbaijan plan to revive the Baku-Supsa oil pipeline

The Ministry of Energy of Kazakhstan stated that Astana and Baku are considering the possibility of launching oil transportation through the „Baku-Supsa“ pipeline. They noted that the parties are currently discussing this issue.

Kazakh Energy Minister Almassadam Satkaliev said that Kadakhstan and Azerbaijan are planning to launch oil transportation via the „Baku-Supsa“ pipeline. The route to the Georgian port of Supsa has a capacity of 5 million tons per year.

According to him, the parties are currently discussing the possibility of launching supplies through this pipeline. The parties are currently calculating the technical characteristics of this route.

In addition, he noted that Astana and Baku agreed on the export of oil from Kazakhstan via Baku-Tbilisi-Ceyhan.

“We have already reached agreements on the export of Kazakh oil via the „Baku-Tbilisi-Ceyhan“ pipeline, and the possibility of launching supplies via the „Baku-Supsa“ pipeline is being discussed. In addition, as we reported, Kazakhstan began supplying oil to Germany via the Druzhba pipeline,” Satkaliev noted.

According to the minister, these supplies are carried out in accordance with previously concluded agreements regarding the transit of Kazakh oil.

Earlier, the head of the Ministry of Energy of Azerbaijan, Parviz Shahbazov, stated that by the end of this year, supplies of Kazakh oil via Baku-Tbilisi-Ceyhan will reach 1.125 million tons of oil.

“Every month Azerbaijan receives from 12 to 14 tankers transporting Kazakh oil. This is a satisfying development. The initial agreement between the parties provided for the transportation of 1.5 million tons of oil this year. However, given that deliveries began in April this year, we will be able to transport 1.125 million tons of oil by the end of 2023,” he said.

Emin Gharibli, Ph.D., Associate Professor of the Department of International Economics at UNEC, in a conversation with a correspondent of “Vestnik Kavkaza”, noted that Baku would be interested in the return to operation of the Baku-Supsa oil pipeline under a long-term contract. 

“Not only we, but all regional countries are interested in diversifying supply routes due to the unstable geopolitical situation in the world. Negotiations with Kazakhstan have been going on for a long time, and it will be beneficial for Azerbaijan to become a transit country for hydrocarbons (not only oil, but also gas in the future). I think that no problems are foreseen here in the future, and the restart of “Baku-Supsa” will only have a positive impact on the Azerbaijani economy,” he said.

“To launch Baku-Supsa, of course, it will be necessary to resolve technical issues due to pipeline downtime, but they can be resolved. The transit of Kazakh oil in this direction will solve the problem of differences in the oil brands transported. Our “Azeri Light” brand is light oil, and Kazakhstan’s is much heavier, and if they are pumped through different pipes, it will be beneficial for both us and Kazakhstan. I think that all of us, oil exporting countries, are strategic partners today, and pumping through our territory will not be directed against the interests of third countries, but, on the contrary, will allow us to cooperate and ensure the energy security of the region,” Emin Gharibli emphasized.

“In general, regarding Baku-Supsa it is necessary to agree only on technical problems. It is worth adding that Azerbaijan is currently concluding agreements on the transportation of many goods through Kazakhstan and our territory. We know that a system of transport hubs has been established in Kazakhstan. I think our cooperation has a very promising future, and together we will make a significant contribution to regional development,” the economist concluded.

The length of the oil pipeline is 837 kilometers. Its throughput capacity exceeds seven million tons of oil per year (145 thousand barrels per day). The pipeline operator is bp. The final destination for oil transportation is the Black Sea port of Supsa in Georgia. The oil is then transported to consumers in Europe on tankers.

Source: https://casp-geo.ru