Caspian Pipeline Consortium Cuts CPC Blend Export Plan by 10%

The Caspian pipeline consortium (CPC) expects to pump about 60 million tonnes of CPC Blend <BFO-CPC> crude oil via the CPC pipeline this year, down from the previous plan for 67 million tonnes, the consortium told Reuters on Tuesday.

"We ... expect to pump around 60 million tonnes, but it (the export volume), of course, depends on producers," CPC said.

On a daily basis, CPC Blend exports will be 10 percent lower than under the previous plan, Reuters calculations show.

The original plan was based on producers' annual requests, CPC said, but shipped volumes can be affected by factors such as maintenance and bad weather.

"We're pragmatists and understand that the maximum volume of loadings (67 million tonnes) is unlikely to be achieved. We stay in contact with producers and plan exports monthly and quarterly, which allows us to make corrections to the export schedule according to the latest changes," CPC told Reuters.

Preliminary CPC Blend loading schedules for August-December, seen by Reuters, and export data for January-July suggest CPC Blend exports may reach 60.2 million tonnes this year, in line with the revised plan.

CPC Blend exports in January-July totalled 34.48 million tonnes, according to Kazakhstan's Energy Ministry data.

The CPC pipeline's current capacity is 72 million tonnes per year with the use of pipe dopes, CPC said. It is unclear whether the capacity may be fully used next year as the consortium has not yet received producers' requests for exports in 2019.

Lower shipments via the CPC pipeline are expected as a result of maintenance on the Tengizchevroil (TCO) and Karachaganak Petroleum Operating (KPO) oilfields in August-October, as well as on the giant Kashagan oilfield.

The CPC consortium's main shareholders are Russia, which holds a 31 percent stake, Kazakhstan's Kazmunaigaz with a 19 percent, and Chevron Caspian Pipeline Consortium Company with 15 percent.

Other shareholders include Lukraco B.V., Rosneft-Shell Caspian Ventures Limited, Mobil Caspian Pipeline Company, Eni, BG Overseas Holding and Oryx Caspian Pipeline.

Reporting by Alla Afanasyeva and Olga Yagova