OREANDA-NEWS. Caspian Pipeline Consortium delegation headed by A. Khardykin, Deputy General Director, RF Government Relations, paid a working visit to Astrakhan Oblast which territory is crossed by Tengiz-Novorossiysk trunk crude pipeline. In the course of the visit Astrakhan PS which is being reconstructed under the CPC Expansion Project and construction sites of A-PS-4A and A-PS-5A were inspected.

At the meeting with K. Markelov, Vice Governor – Chairman of Astrakhan Oblast Government, and S. Krzhanovsky, Deputy Chairman of Astrakhan Oblast Government – Minister of Industry, Transport and Natural Resources, the main matters of the interaction between the Consortium and the region were discussed, specifically, the Expansion Project work progress. The Project to increase the CPC crude pipeline system throughput capacity provides for reconstruction of Astrakhan PS in Yenotaevsky district and construction of two additional pump stations in Krasnoyarsky and Narimanovsky districts. In total it is planned to invest about 18-20 billion Rubles in the region under the Expansion Project. Several hundreds of additional jobs for locals are being created for the period of construction and subsequent operation of the crude pipeline system facilities. With the growth of the crude pumping volumes payments into the regional and local budgets will increase in times. In addition, the Company, besides its regular charity support, allocates 150 million Rubles towards implementation of social programs under the Expansion Project.

CPC representatives also participated in a ceremony for handing over equipment and sports outfit to pupils of Yenotaevsky children’s and youth sports school. For the purposes of supporting children’s and youth physical growth and development in the region the Consortium handed over a modern rink, boxing ring and also field and track exercise equipment and hockey uniforms to the young sportsmen.

In December 2012 with the Consortium’s support a major reconstruction of Yenotaevsky secondary school was replaced. In addition, CPC is currently implementing a project to construct a new modular boiler house for the facility heat supply.

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 includes rehabilitation of 5 existing and construction of 10 additional pump stations (2 in the Republic of Kazakhstan and 8 in the Russian Federation), six new storage tanks (100,000 cu.m each) in addition to the existing four near Novorossiysk and a third SPM at the CPC Marine Terminal, and also the replacement of an 88 km pipeline section in Kazakhstan with a larger diameter pipe. The total amount of the Project investments 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%.