OREANDA-NEWS. December 28, 2012. A launching ceremony was held in Iki-Burulskiy district of the Republic of Kalmykia to mark the commissioning of OPS-3 power substation of 110/10 kV as part of the Caspian Pipeline Consortium pipeline throughput Expansion Project. This substation was built at the expense of the consortium by JSC MRSK South under a technological connection agreement with CPC for the future CPC oil pumping station (OPS-3).

In December 2010, after the final decision was passed regarding the CPC Expansion Project, it was decided to connect virtually all new oil pumping stations constructed under the Project to external power sources, which is the most nature friendly way to provide power supply for industrial facilities. Technological connection agreements have been made with power supply companies in all regions passed through by the CPC pipeline, providing for construction of new electrical power lines, power substations, and other requisite facilities.

In Kalmykia, implementation of the investment project of future OPS-2 and OPS-3 technological connection was commenced in 2011 by JSC MRSK South jointly with the government of the Republic. Today, apart from building the 110/10 kV OPS-3 substation with incoming overhead power lines from 110/35/10 kV Iki-Burul power substation and 110/35/10 Raguli power substation, the existing JSC MRSK South – Kalmenergo grid has been reinforced through reconstruction of a few power substations in Kalmykia’s Chernozemelskiy and Iki-Burulskiy districts. Approximately 300 meters of 110 kV electric power lines were installed and renovated to connect facilities upgraded for the purposes of the investment project.

During the power substation launching ceremony, CPC Director General Nikolay Platonov expressed gratitude to the specialists of JSC MRSK South for their quality and timely work and congratulated all attendees on this significant milestone: “For the Consortium, the launch of OPS-3 substation is a landmark on the way to implement the Tengiz-Novorossiysk pipeline throughput Expansion Project. This is actually the first fully completed operating facility in the course of construction. Its objective is to provide guaranteed power supply for one of the future main joints of our system, i.e. an oil pumping station that will send crude oil to a distance of approximately 100 km. To Kalmykia’s residents, on the other side, the work under technological connection agreement will make power supply more reliable, thus raising the quality of life. It is symbolic that the first social facility under the CPC Expansion Project was also completed in Kalmykia – namely, the fully renovated Children Creativity Center in the Komsomolskiy residential community that we opened in early October”.

CPC pipeline system is one of the largest investment projects in the energy industry with participation of foreign capital on the CIS territory. The length of the pipeline connecting the oil fields in Western Kazakhstan with the Marine Terminal near Novorossiysk is 1,511 km. CPC Marine Terminal is equipped with single point moorings which allow for safe tanker lifting at a considerable distance from the shore, also when the weather conditions are unfavorable.

The Expansion Project envisages rehabilitation of 5 existing and construction of 10 additional pump stations (2 in the Republic of Kazakhstan and 8 in the Russian Federation), six near Novorossiysk and an SPM at the CPC Marine Terminal to supplement 4 existing crude oil storage tanks. It also includes replacement of a 88 km pipeline section in Kazakhstan with a larger diameter pipe. Total investment in the Project will be USD 5.4 billion.

CPC Shareholders: Russian Federation (represented by Transneft - 24% and CPC Company - 7%) - 31%; Republic of Kazakhstan (represented by KazMunayGaz - 19% and Kazakhstan Pipeline Ventures LLC - 1.75%) - 20.75%; Chevron Caspian Pipeline Consortium Company - 15%, LUKARCO B.V. - 12.5%, Mobil Caspian Pipeline Company - 7.5%, Rosneft-Shell Caspian Ventures Limited - 7.5%, BG Overseas Holding Limited - 2%, Eni International N.A. N.V. - 2% и Oryx Caspian Pipeline LLC - 1.75%