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Fitch Solutions talks two ways for Kazakhstan to export oil through Azerbaijan

Oil Materials 12 September 2022 14:28
Baku, Azerbaijan Trend News Agency Maryana Akhmedova
Fitch Solutions talks two ways for Kazakhstan to export oil through Azerbaijan

Kazakhstan has held talks with Azerbaijan on oil export through the Baku-Tbilisi-Ceyhan pipeline to Turkey, which is expected to launch in September 2022, Trend reports via Fitch Solutions.

However, the planned volumes of 30,000 barrels per day are minimal, the report said.

At the same time, an additional 75,000 barrels per day could be sent from Kazakhstan through Azerbaijan to the Black Sea port of Supsa in Georgia or via rail, “with the country having already ramped up its crude-by-rail shipments in the year-to-date,” Fitch Solutions noted.

Nevertheless, as the report noted, “all these options, though, face considerable logistical constraints and any lasting shutdown of the CPC flows would lead to considerable curbs on the country’s oil production”.

According to the report, Fitch Solutions maintains an optimistic short-term forecast for oil production in Kazakhstan, forecasting that the total volume of liquid hydrocarbon production will grow by 5.1 percent year-on-year in 2022, and by 4.3 percent in 2023. Additional investment will be required to sustain positive growth in the long term.

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