Kazakhstan Alternative Oil Route

Since March 2022, there have been two shutdowns of the CPC terminal in Novorossiysk, Black Sea port in Russia. This highlights the need for Kazakhstan to secure a viable alternative oil export route to global markets.  Accordingly, on June 16, 2022, Kazakhstan’s President, Kassym-Jomart Tokayev, instructed the Ministry of Energy (MoE) and national oil and gas company KazMunayGas (KMG) to prioritize the expansion of the existing Trans-Caspian route (which transfers commodities across the Caspian to Azerbaijan and onward). KMG has developed a plan outlining the best options for the expansion of the Trans-Caspian International Transport Route (TITR). 

To facilitate and implement these plans, Kazakhstan is seeking to partner with U.S. companies to further develop the TITR.  Since May 2022, various initiatives have begun to increase the throughput capacity of oil pipelines and modernize the seaports of Aktau (has four oil terminals and two additional piers for loading oil) and Kuryk, along the east coast of the Caspian Sea in Kazakhstan. Kazakhstan is looking for U.S. transport and logistics companies to provide expertise, services, and products that will enhance the seaports of Aktau and Kuryk in its transport of oil via the Baku (Azerbaijan)-Tbilisi (Georgia)-Ceyhan (Turkey) pipeline (BTC pipeline), and possibly via additional routes.

There are immediate prospects for U.S. companies in Kazakhstan for participation in projects involving the increasing capacity of/rerouting of oil to the TITR, and for projects involving port upgrades to the Aktau and Kuryk ports.

For more information on alternative supply routes for oil export from Kazakhstan, contact commercial specialist, azhar.kadrzhanova@trade.gov.