Photo: Caspian Pipeline Consortium (CPC) press service
Kazakh oil shipments through Russian seaports have not been suspended following a new decree signed by Russian President Vladimir Putin, Kazakhstan’s Ministry of Energy told Interfax.
“With regard to the situation at the port of Ust-Luga, due to the introduction of additional measures to enhance the security of transport infrastructure, KazTransOil JSC is holding talks with Neva Pipeline Company LLC,” the ministry said, referring to the operator and owner of the oil transshipment terminal at Ust-Luga seaport.
Earlier, Reuters reported—citing unnamed sources—that the loading of oil tankers in Novorossiysk and Yuzhnaya Ozereyevka had been halted due to a new administrative procedure requiring that the entry of foreign vessels into Russian ports be approved by the Federal Security Service (FSB). The decree tightening port regulations was signed by President Putin on July 21.
Reuters claimed that the new requirement had effectively blocked exports of Kazakh crude shipped via the Caspian Pipeline to the Black Sea for delivery to Western markets. One source suggested that the situation could be resolved within a few days.
The Black Sea port of Novorossiysk handles exports and transit of Urals, KEBCO, and Siberian Light crude. The nearby terminal in Yuzhnaya Ozereyevka, operated by the Caspian Pipeline Consortium (CPC), handles CPC Blend.
The CPC pipeline system is the largest export route for oil from the Caspian region to global markets. It is also Kazakhstan’s primary export corridor, accounting for more than 80 percent of the Kazakh volumes pumped through the pipeline.
