Oil transportation

KMG completed the construction of an oil transportation infrastructure to supply hydrocarbons to export markets. Medium-term priorities:

  • Increase existing capacity utilisation by making KMG’s oil transportation systems more attractive and competitive
  • Improved operating-cost control
The two oil transportation modes at KMG are trunk pipelines and the marine fleet
Indicator Trunk pipeline transportation Marine fleet transportation
Management company KazTransOil (KTO) Kazakhstan–China Pipeline (KCP) MunayTas (MT) Caspian Pipeline Consortium (CPC) Kazmortransflot (KMTF)
Interest KMG: 90% 10% of shares are owned by minority shareholders who acquired them under the People’s IPO programme. KTO: 50% KTO: 51% KMG: 20.75% KMG: 100%
Key destinations Exports to Europe and China, domestic market Exports to China, domestic market Exports to China, domestic market Exports to Europe Exports to Europe
Key routes Kazakhstan’s refineries Uzen–Atyrau–Samara Port of Aktau Oil transshipment to the CPC and Atasu–Alashankou pipelines Atasu–Alashankou Kenkiyak–Kumkol Kenkiyak–Atyrau Tengiz–Novorossiysk Black Sea Mediterranean Sea Caspian Sea
Total length, km 5,372 1,759 449 1,510 n/a
Capacity, mtpa 17.5Capacity of the Atyrau-Samara section.
5.2Capacity of the Port of Aktau (large-capacity vessel berths, oil loading).
20 6 67 n/a

Pipeline infrastructure

Kazakhstan’s pipeline infrastructure is owned by JSC KazTransOil – the national oil pipeline operator, its two joint ventures (Kazakhstan–China Pipeline LLP and MunayTas North-West Pipeline Company LLP) and Caspian Pipeline Consortium. The existing pipeline infrastructure in Kazakhstan has adequate potential to support increased oil transportation volumes from promising projects.

JSC KazTransOil (KTO) is the national oil pipeline operator of the Republic of Kazakhstan. The company owns an extensive network of trunk oil pipelines with a total length of 5,372 km, to which virtually all oil fields in Kazakhstan are connected. The Company transports oil to Kazakhstan’s four major refineries, pumps oil for export via the Atyrau–Samara pipeline, transships oil to the CPC and Atasu–Alashankou export pipelines, and ships oil to tankers in the Port of Aktau and by rail. Oil transportation via trunk oil pipelines is supported by 36 oil pumping stations, 67 heaters, and a tank farm for oil storage with a total capacity of 1.4 mln m3. JSC KazTransOil also provides operation and maintenance services for the trunk oil pipelines of Kazakhstan–China Pipeline LLP, MunayTas North-West Pipeline Company LLP, Karachaganak Petroleum Operating B.V., JSC Caspian Pipeline Consortium-K, and JSC Turgai Petroleum, as well as for the trunk water line of Main Waterline LLP.

Kazakhstan–China Pipeline LLP is the owner of the Atasu–Alashankou (965 km) and Kenkiyak–Kumkol (794 km) oil pipelines. The company transports Kazakhstan’s oil and transit Russian oil to China and to the domestic market.

MunayTas North-West Pipeline Company LLP (MT) is the owner of the 449 km Kenkiyak–Atyrau oil trunk pipeline. In 2018, the company started implementing the Kenkiyak–Atyrau pipeline reverse project to support supplies of West Kazakhstan’s oil to domestic refineries and to compensate production declines in the Aktobe and Kyzylorda Regions, as well as to support exports to China totalling up to 6 mtpa. The project cost is KZT 28.6 bln. Within the project, the first start-up complex has been commissioned, and the construction of the second start-up complex is now complete. The project’s completion is slated for Q2 2021.

Caspian Pipeline Consortium (CPC) is an international oil transportation project involving Russia, Kazakhstan and the world’s leading industry players. It was established for the construction and operation of a 1,510 km trunk pipeline (452 km are within Kazakhstan). The CPC oil pipeline is a priority export route for Kazakhstan’s oil supplies, connecting Kazakhstan’s Tengiz oil field with the Yuzhnaya Ozereyevka oil terminal on the Black Sea (near the Port of Novorossiysk). Oil transportation via the CPC pipeline is supported by 15 oil pumping stations, an oil storage tank farm with a total capacity of 1.3 mln m3 and three single-point moorings.

In view of the anticipated increases in oil production from Tengiz and Kashagan, in 2019 CPC shareholders resolved to launch a debottlenecking project for the pipeline system, which is expected to increase the volume of Kazakhstan’s oil transportation to 72.5 mtpa. The project timeframe is 2019–2023, and its cost is USD 600 mln. The project will be financed using CPC’s own funds.

Trunk pipeline oil transportation

Volume of oil transportation, ths tonnesConsolidated volume of oil transported includes the transportation volume of each individual pipeline company, including the operating share of KMG (excluding KTO). Part of the oil volumes can be transported by two or three pipeline companies, and these volumes are accordingly counted more than once in the consolidated volume of oil transportation.
Company 2018 2019 2020
KazTransOil (100%) 45,309 44,463 42,298
export 19,135 17,591 16,699
transit 10,025 9,989 9,989
domestic market 16,149 16,883 15,610
Kazakhstan–China Pipeline (100%) 15,997 16,200 15,883
export 1,506 859 571
transit 9,979 9,979 9,979
domestic market 4,512 5,362 5,333
MunayTas (100%) 3,878 3,232 3,321
export 2,697 1,998 1,595
domestic market 1,181 1,234 1,726
Caspian Pipeline Consortium (100%), export 61,084 63,256 59,027
Oil transportation turnover, mt*km
Company 2018 2019 2020
KazTransOil (100%) 38,040 37,658 35,899
Kazakhstan–China Pipeline (100%) 14,607 14,590 14,368
MunayTas (100%) 1,522 1,232 1,322
Caspian Pipeline Consortium (100%) 80,549 82,997 77,207
Oil transportation turnover (net to KMG), mt*km
Company 2018 2019 2020
KazTransOil (100%) 38,040 37,658 35,899
Kazakhstan–China Pipeline (50%) 7,304 7,296 7,185
MunayTas (51%) 776 628 674
Caspian Pipeline Consortium (20.75%) 16,714 17,222 16,020

In 2020, KMG’s share in the consolidated volume of trunk pipeline oil transportation was down by 3,156 ths tonnes to 64,181 ths tonnes. The decline was driven by the limited oil supply from JSC CNPC International Aktobe Petroleum, after a critical excess of organochlorine compounds was discovered in their oil supply in January 2020, compounded by an overall decline in oil supply amid a drop in oil production from other companies due to natural decline in production from the Kumkol group of fields and OPEC+ restrictions.

Volume of oil transportation (net to KMG), ths tonnesConsolidated volume of oil transported includes the transportation volume of each individual pipeline company, including the operating share of KMG (excluding KTO). Part of the oil volumes can be transported by two or three pipeline companies, and these volumes are accordingly counted more than once in the consolidated volume of oil transportation.
Structure of oil transportation by destination in 2020, %

Tariff policy

The tariffs for crude oil transportation to Kazakhstan’s domestic market are regulated by the government.

According to Law of the Republic of Kazakhstan No. 204-VI on Natural Monopolies dated 27 December 2018, oil transportation services to support transit via the territory of the Republic of Kazakhstan and exports outside the Republic of Kazakhstan are beyond the scope of natural monopolies.

Tariffs for oil transportation to the domestic market, KZT per tonne per 1,000 km
Company 2018 2019 2020
KazTransOil 4,292 4,722 (01.01.2019–31.08.2019)

4,717 (01.09.2019–31.12.2019)
Kazakhstan–China Pipeline 6,507 7,158 6,456 (01.01.2020–31.01.2020)

7,158 (01.02.2020–31.12.2020)
MunayTas 5,698 (01.01.2018–30.06.2018)

5,724 (01.07.2018–31.12.2018)
5,724 (01.01.2019–30.06.2019)

5,912 (01.07.2019–24.12.2019)

5,457 (25.12.2019–31.12.2019)
5,457 (01.01.2020–24.12.2020)

5,912 (25.12.2020–31.12.2020)
Tariffs for oil transportation for export
Company 2018 2019 2020
KazTransOil, KZT per tonne per 1,000 km 6,399 6,399 6,399 (01.01.2020–29.02.2020)

7,359 (01.03.2020–31.12.2020)
Kazakhstan–China Pipeline, KZT per tonne per 1,000 km 6,799 6,799 6,799
MunayTas, KZT per tonne per 1,000 km 5,912 5,912 5,912
Caspian Pipeline Consortium, USD per tonne 38 38 38
Tariffs for transit to China, USD per tonne
Company 2018 2019 2020
KazTransOil 3.11 4.23 4.23
Kazakhstan–China Pipeline 8.25 10.77 10.77

Oil transportation by sea

Transport assets

NMSC Kazmortransflot LLP (KMTF) is the National Sea Carrier. Its assets include:

  • merchant fleet: owned oil tankers: Astana, Almaty and Aktau, each with a deadweight of 12,000 tonnes; and Aframax oil tankers – Alatau and Altai, each with a deadweight of 115,000 tonnes
  • marine support fleet: 8 barge platforms of KMG series with a capacity of 3,600 tonnes each
  • fleet to support Tengizchevroil’s Future Growth Project: 3 Caspian-class barges (MCV) – Barys, Berkut and Sunkar with a capacity of 5,200 tonnes each, and 3 tugboats – Talas, Emba and Irgiz with a bollard pull of 40 tonnes-force each.

The main current routes for oil transportation by sea:

  • Routes in the Caspian Sea waters
  • Routes in the Black Sea and Mediterranean Sea waters

Performance highlights

In 2020, the total volume of oil transportation by sea decreased significantly by 16.2% year-on-year to 8,990 ths tonnes, mainly due to lower volumes of transportation in the Mediterranean Sea as a result of downtime while waiting for loading, as well as unfavourable weather conditions.

Transportation volumes, ths tonnes
Sea 2018 2019 2020
Black Sea and Mediterranean Sea 4,339 10,186 8,361
Caspian Sea 2,738 543 629
Total 7,077 10,729 8,990
Oil transportation turnover, mt*km
Sea 2018 2019 2020
Black Sea and Mediterranean Sea 4,122 9,676 7,942
Caspian Sea 887 165 197

In March 2020, KMG provided support to KMTF in concluding an agreement with COSCO Shipping for transporting outsized cargoes from South-East Asia to Kazakhstan.

From April to June 2020, a total of 25 outsized cargoes weighing about 3,600 tonnes in total were successfully transported from the Port of Constanța in Romania to the Port of Atyrau in Kazakhstan for KPI Inc.’s petrochemical project under construction in Atyrau. KMTF engaged a total of 42 vessels (both owned and leased), including 6 barges, 24 river and 12 sea tugboats.

Under Tengizchevroil’s Future Growth Project (FGP), KMTF transported about 90 outsized cargoes (57,000 tonnes in total) during the navigation seasons of 2018–2020. With KMTF’s withdrawal from the project in 2020, an MCV ship Barys will be converted into a container ship. The conversion started in Q3 2020; the ship is planned to be used for container shipping services along the Aktau–Baku–Aktau feeder line.