KMG: the tariff for pumping Kazakh oil through the BTC pipeline is confidential

JSC “KazMunayGas” (KMG) oil company  refused to disclose the tariff for the transportation of Kazakh oil through the main export pipeline Baku-Tbilisi-Ceyhan (BTC), referring to the confidentiality of information. The national company of Kazakhstan reported that the delivery of oil from Atyrau to the EU border through Russia and Belarus via the “Drujba” pipeline is $29 per ton.

On April 22, the shipment of Kazakh oil from Ceyhan to Romania began. The oil transit agreement was signed between JSC oil company “KazMunayGas” and the State Oil Company of the Republic of Azerbaijan (SOCAR). According to KMG, the terms of the agreement provide for mutual obligations of the parties to transport guaranteed volumes of oil.

“According to the terms of the concluded Oil Transit Agreement, information about the tariff is not subject to disclosure,” KMG notes.

The cost of Kazakh oil transported via the BTC oil pipeline, as well as on other sales routes, is determined by market conditions and depends on world oil price quotes, distance, quality and demand, the national company explained.

“The oil transported through the BTC pipeline is shipped under the BTC Blend brand. On March 21, 2023, the first tanker with Kazakh oil was shipped to the port of Aktau in the direction of BTC. On April 22, 2023, the first 90 thousand tons of oil from the Turkish port of Ceyhan was shipped in the direction of Romania,” KMG added.

To clarify, the agreement on the transit of oil along the Aktau-Baku-Ceyhan route in the annual volume of 1.5 million tons was signed between JSC oil company “KazMunayGas” and Azerbaijan SOCAR at the end of last year. In March of this year, shipments of Kazakh oil in the direction of Aktau-Baku began. The Kazakh and Azerbaijani fleets are involved in the transportation on a parity basis.

Currently, the BTC pipeline pumps oil from the Azeri-Chirag-Gunashli block of fields and condensate from the “Shah Deniz” field, as well as oil from the State Oil Company of Azerbaijan. Also, oil from other sources is flowing along these highways.

The total volume of oil pumping through the Baku-Tbilisi-Ceyhan pipeline in 2022 amounted to 29 million 749.6 thousand tons,  by 12.6% higher than in 2021, including transit oil – 5 million 103.9 thousand tons (an increase of 41.8%).

Caspian Barrel