Chevron Neftegaz Inc, an affiliate of Chevron Corporation has marked the start of the construction phase of the $5.4 billion expansion of the Caspian pipeline.
The capacity of the 900 mile pipeline, which carries crude oil from western Kazakhstan to a terminal in the Black Sea, will increase to 1.4 million barrels per day from its current capacity of 730,000 barrels per day.
Andrew McGrahan, President of Neftegaz Inc said: “CPC is a model of co-operation between Russia and Kazakhstan and is an indication of the confidence we have in Russia and in oil transportation from the Caspian region. This groundbreaking event represents years of dedication and commitment to expanding the commercial links between the two countries and sends a powerful signal that Russia and Kazakhstan are countries where major, long-term capital investments can be made with confidence”.
In October this year, CPC will celebrate 10 years of successful tanker loading. Since the start of operations, over 2 billion barrels of oil (250 million tons) have been transported through the system.