Kazakhstan is redirecting a portion of its oil exports through alternative routes due to ongoing limitations at a key Black Sea export terminal. The state pipeline operator, Kaztransoil, plans to increase December shipments via Russia, China, and Azerbaijan by over 2.7 million barrels. The majority will flow to Russia via pipeline for onward shipment to Baltic ports or Germany, while the remainder will go to China via pipeline or to Azerbaijan's Caspian port for subsequent pipeline transport to the Turkish Mediterranean coast.

Cause of Export Disruption

This rerouting is a response to restricted operations at the Caspian Pipeline Consortium (CPC) terminal near Novorossiysk following a Ukrainian naval drone attack on November 29. The attack damaged and reportedly sank one of the terminal's three single point mooring (SPM) systems used to load tankers. A second SPM has been offline since mid-November for scheduled upgrades, leaving the terminal operating with only one functional SPM, which has reduced loading capacity.

Efforts to Restore Capacity

The CPC is working to accelerate the scheduled maintenance on the upgraded SPM unit to restore full loading capacity. While poor winter weather complicates the work, reports suggest completion is imminent, potentially between December 11 and 15. The operator has stated it will announce when the unit is operational, at which point the terminal can return to normal loading volumes. The consortium typically uses two SPMs to handle exports from Kazakhstan's three major oilfields, with the third as a backup.

Impact and Future Security

The current operation with a single SPM has reduced the terminal's loading rate by 155,000 barrels per day. In light of the disruption, senior executives from the CPC and Kazakhstan's state oil holding company, KazMunayGaz, have met and expressed readiness to collaborate on joint projects aimed at improving the security of shipments through the pipeline network.