Transportation of Oil and Gas in

Klara G. Rakhmetova Director Pipeline Transport Development

KazMunayGas KAZAKHSTAN Existing and Prospective Export Routes for Kazakhstan Oil

1.1

Omsk

Samara

2.1 Pavloda 1 r

2 1.2 Odessa 4 2.2 Novorossiysk Supsa 3 2.3

Baku 5 mt Oil Production Chardzho 200 Ceyhan Neka u 150

100 150 50 100 47,2 51,3 0 2002 2003 2010 2015 1 – Atyrau- 2 – CPC 3 – Aktau-Baku-Tbilisi-Ceyhan 1.1 – BPS 2.1 – Odessa-Brody-Gdansk 4 – Kazakhstan-China 1.2 – Druzhba-Adria 2.2 – Constanta-Trieste 5 – Kazakhstan-- 2.3 – Burgas-Alexandroupolis Conditions For Transit Reliability and Stability a) Main Criteria and Principles For Granting Access To Available Capacity b) Need For Clear Rules Regulating Construction and Reconstruction of Energy Transport Facilities c) Main Principles For Setting Transit Tarrifs Kazakhstan Oil Exports

• Atyrau-Samara Pipeline – Throughput capacity to be increased to 25 mty – Exports via Baltic Pipeline System: • 2002 – 1,055 mt, 2003 – 1,589 mt • Caspian Pipeline Consortium – 2nd stage: by 2006 to increase capacity to 32 mty (Kazakhstan part) mty 2004 2002 2003 plan Atyrau-Samara 14 14,2 17 CPC 12 14,7 21,2 Aktau-Baku-Tbilisi-Ceyhan System

• Aktau-Baku corridor + BTC Pipeline

• Eni, ConocoPhillips, Inpex, and Total hold 15 percent in BTC project • Intergovernmental Agreement currently being developed by Kazakhstan and Kazakhstan-China Pipeline

RUSSIA Samara Omsk

Орск Karachaganak ASTANA Атырау Kenkiyak

Kashagan Atasu Tengiz Aktau

Kumkol Caspian Alashankou Sea

Almaty UZBEKISTAN Shymkent Urumqi TURKMENISTAN KYRGYZSTAN CHINA Chardzhou

IRAN

Oil Pipeline Refinery Kazakhstan-China Pipeline (continued)

• May 2004 – Agreement “On Principles of Construction of Atasu-Alashankou Pipeline” signed by KazMunayGas and CNPC

• Sept. 28 – Pavlodar construction of Ermak Atasu-Alashankou ASTANA pipeline started Semipalatinsk st •1stage capacity: KAZAKHSTAN 10 mty (2006) Atasu-Alashankou Karagaily Pipeline •2nd stage capacity: Agadyr Akchatau 20 mty (2011) Atasu Aktogai Sayak Usharal CHINA • 50/50 joint venture

e k established by a L Alashankou h s a h lk Kazakhstan and China a B • Project cost - $700 million Kazakhstan-Turkmenistan-Iran Pipeline

• Studies in process in accordance with the Agreement on Joint Studies concluded between KMG, Total, JNOC, and Inpex • Long-term export option for delivering Kazakhstan oil to Asian markets via Persian Gulf Export Routes for Kazakhstan Oil

1.1

Omsk

Samara

Pavlodar 2.1 1

2 Atyrau 1.2 Odessa 4 2.2 Novorossiysk Makhachkala Aktau Shymkent Supsa 3 2.3

Baku 5

Chardzhou Ceyhan Neka

1 – Atyrau-Samara 2 – CPC 3 – Aktau-Baku-Tbilisi-Ceyhan 1.1 – BPS 2.1 – Odessa-Brody-Gdansk 4 – Kazakhstan-China 1.2 – Druzhba-Adria 2.2 – Constanta-Trieste 5 – Kazakhstan-Turkmenistan-Iran 2.3 – Burgas-Alexandroupolis Existing Gas Pipelines in Kazakhstan

2003 Gas Transportation Figures (bn m3): International Transit 106,4 Domestic Transportation 4,8 Samara 4 Kazakhstan Gas Exports 5,9

Aleksandrov Gai 2 1

3

1 – Central Asia-Center 2 – Bukhara-Ural 3 – BGR-TBA 4 – Orenburg-Novopskov Central Asia – Center Pipeline

• In 2003, 42,3 bn m3 transported • By 2010, a raise to 75-90 bn m3 expected • In 2001, reconstruction of the pipeline started – Capacity raised from 31 bn to 54,6 bn m3 • Several options for expanding the pipeline’s capacity considered • Expansion to be done in seven phases Options For Delivering Gas To China

RUSSIA SWAP

e k a L l a ik a 2 B Karachaganak Astana Mongolia Tengiz 3 Beijing

1 Urumqi 4 Shanghai C H I N A

1 – Bukhara – Almaty – Druzhba – Urumqi 3 – Chelkar-Shymkent-Druzhba-Urumqi 2 –Ishim–Astana–Drushba-Urumqi 4 – West-East Pipeline