Caspian Pipeline Consortium approves oil pipeline and terminal expansion

ALMATY, Kazakhstan - The Caspian Pipeline Consortium (CPC) plans to expand the capacity of the 1,580-km. CPC Pipeline, which runs from western Kazakhstan to the Black Sea coast in Russia, to 67 MMt/a of oil.
The expansion project was approved at a recent meeting of the CPC board of directors. The meeting also covered matters regarding the project management, purchase of long-lead equipment and financing approaches for the project.
The expansion will involve construction of 10 additional pump stations - two to be located in Kazakhstan and eight to be located in Russia - six crude oil storage tanks near Novorossiysk, and a third single point mooring at the CPC Marine Terminal.
Construction is expected to begin as early as next year with completion in 2014.

Russia turns increasingly beyond borders for natural gas supplies

Russia's predicted gas shortfall seems to have set in earlier than expected.
Gazprom's gas production is expected to decline to 510 billion cubic meters (bcm) in 2009 from a level of 550 bcm in 2008. Gazprom as a result may be forced to limit its exports to 170 bcm in 2009, compared to 179 bcm last year.
Russia's biggest Soviet-era gas fields are past their prime. Moscow expects that through development of giant new fields, the decline in production can be made up. The fields at Bovanenkovskoye and Yamal were expected to produce their first gas by 2011, and Shtokman by 2015. But the financial crisis in the West affects fresh investments.
As a result, Central Asia's importance as a source of cheap energy has increased for Russia. Gazprom is currently buying roughly 50 bcm of gas from Turkmenistan, 15 bcm from Kazakhstan and seven bcm from Uzbekistan. Central Asian producers accounted for about 14 percent of Gazprom's total production last year.