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Kazakhstan Oil & Gas


Kazakhstan's oil and gas fields are well connected to regional and international markets via a network of trans-regional pipelines, with a capacity to transport more than 2.5 mmbbls/day of oil.

The 4 main trans-regional oil pipelines are:

  • Caspian Pipeline Consortium (CPC)
    • Length: 940 miles (runs from the Tengiz oil field to the Russian Black Sea port of Novorossiysk)
    • Capacity: Reported to transport an average of 743 thousand bbl/day in 2009
  • Kazakhstan-China Pipeline
    • Length: 1,384 miles (runs from Atyrau Port in Kazakhstan to Alashankou in China's northwest Xinjiang region)
    • Capacity: 200 thousand bbl/day (planning for expansion to 400 thousand bbl/day by 2013)
  • Atyrau-Samara Pipeline
    • Northbound link to Russia's Transneft distribution system
    • Capacity: 600 thousand bbl/day
  • Baku-Tbilisi-Ceyhan Pipeline (BTC)
    • Kazakhstan ships oil by tanker via the Caspian Sea to Baku in Azerbaijan, from which Kazakh oil is loaded into the BTC pipeline. The BTC pipeline has a capacity of 1 million bbl/day, of which 500 thousand bbl/day is contracted to Kazakhstan

Figure 18: Oil and Gas Export Infrastructure for Kazakhstan


The Kazakhstani economy is one of the fastest and most dynamically developing economies in the Commonwealth Independent States ("CIS"). The growth has been driven mainly by large foreign investments in the oil and gas industry, which has spun off growth in other industries.

The country has considerable mineral wealth and vast areas of arable land. Kazakhstan inherited significant amount of infrastructure from the Soviet and has a relatively well-educated population. The economy is heavily dependent on a few commodities and faces the challenge of diversification. The Gross Domestic Product ("GDP") of Kazakhstan has been growing constantly between 2003 and 2008.

The largest input to the GDP comes from the energy sector. Oil extraction and oil-related construction, transportation, and processing accounted for 22.3 percent of GDP in 2009, and fuel and oil products made up 68 percent of exports. Ferrous and non-ferrous metals and grains are the only other significant export products. Its major trading partners in 2009 were China, Russia, France, Germany, Ukraine, Romania and Italy.

Considering the continued high global oil prices and the significant level of both state and private investment planned in 2008, it is anticipated that GDP will increase to more than USD200 billion in 2015 giving a per capita GDP of USD15 thousand, which will enable the implementation of large social projects and socio-economic programs. Development of the oil sector will continue to benefit the service sectors such as communications and retail trade.

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