Kazakhstan investigates potential oil export path through Baku-Supsa Route
Kazakhstan Explores New Oil Export Route Through Baku-Supsa Pipeline Corridor
Kazakhstan is actively pursuing the transportation of its crude oil through the Baku-Supsa pipeline corridor as a key measure to diversify its energy export routes and reduce dependency on Russia.
Recent developments show that Kazakhstan has already begun shipping oil via the Baku-Tbilisi-Ceyhan (BTC) pipeline and is exploring reopening the dormant Baku-Supsa pipeline, which has a capacity of 6 million tons per year.
Increased oil transit through BTC has already begun, with Kazakh Tengiz oil being transported via the BTC pipeline since March 2023, with plans to increase volumes gradually to 2.2 million tons per year. Discussions are ongoing to potentially transport Kazakh oil via the Baku-Supsa pipeline, offering an additional alternative route.
The Energy Ministry of Kazakhstan is involved in discussions regarding this new oil export route. The destination for the first shipment is the Százhalombatta refinery in Hungary, with a total volume of 85,000 tons.
Hungary is set to receive its first shipment of Kazakh oil, marking a significant step in the diversification of energy supply channels. Kazakhstan currently exports approximately 80% of its crude oil production to various countries, including those in the European Union, China, Japan, South Korea, Türkiye, and the United States.
The transportation of Kazakhstan’s oil through the Baku-Supsa pipeline corridor offers several potential benefits. It allows for energy export diversification away from Russia, reducing vulnerability to geopolitical pressures and export restrictions. The corridor also provides an opportunity to maintain oil quality control by avoiding longer or more complex routes that could affect crude integrity.
Improved market access, especially to European and Mediterranean markets through Georgia’s Black Sea ports, is another potential benefit. The corridor also enhances regional cooperation with Azerbaijan and Georgia, strengthening energy transit corridors in the South Caucasus. Greater logistical flexibility, with multiple pipelines and sea routes supporting continuous oil exports despite geopolitical or technical disruptions on any single route, is another advantage.
However, challenges remain such as the need to modernize ports and increase tanker capacity along the corridor. The feasibility of this route depends on its economic attractiveness and operational efficiency for Kazakhstan's shippers.
The establishment of agreements between relevant economic entities will be a determining factor for this new oil export route. The Atasu-Alashankou route exported 1.2 million tons of Kazakh oil, and the Atyrau-Samara pipeline exported 8.8 million tons of Kazakh oil in 2023. Railway transport through the Shagyr oil loading facility towards Uzbekistan exported 50,000 tons of Kazakh oil. The potential transportation of Kazakhstan's crude oil through this new route is under consideration.
The source of the information is LS Aqparat news agency. The Caspian Pipeline Consortium exported 54.9 million tons of Kazakh oil in 2024. No further details about the economic attractiveness or operational efficiency of the proposed route were provided in this paragraph.
In conclusion, the transportation of Kazakhstan’s oil through the Baku-Supsa pipeline corridor represents a significant step toward energy export resilience and geopolitical diversification. The proposed route offers potential benefits such as energy export diversification, maintaining oil quality control, improved market access, enhanced regional cooperation, and greater logistical flexibility. However, challenges remain, and the feasibility of the route will depend on its economic attractiveness and operational efficiency for Kazakhstan's shippers.
Kazakhstan is considering transporting oil via the dormant Baku-Supsa pipeline, in addition to the Baku-Tbilisi-Ceyhan pipeline, to further diversify its energy export routes and reduce dependence on Russia. The potential shipment of Kazakh oil to the Százhalombatta refinery in Hungary marks a significant step in the diversification of energy supply channels, and improved market access, especially to European and Mediterranean markets, is another potential benefit.
