Kazakh oil still flowing through still-operational CPC mooring

Kazakh oil still flowing through still-operational CPC mooring

Kazakhstan's oil exports have remained resilient despite ongoing disruptions at the Caspian Pipeline Consortium (CPC) terminal. On July 2, 2025, the CPC reported that while two mooring points were suspended following accidents and an oil spill, one mooring point, SPM-1, continues to operate, allowing oil to flow through the terminal.

The CPC, which handles over 1% of global oil exports, has faced operational challenges in recent months. In March 2025, two of its three single-point moorings at the Novorossiysk terminal were suspended due to a Russian-ordered inspection following a spill in the Kerch Strait, reducing throughput by 50% and forcing Kazakhstan to divert crude to the Baku-Tbilisi-Ceyhan (BTC) pipeline [1]. Additionally, a February 2025 Ukrainian drone attack on the Kropotkinskaya pumping station caused a 30% reduction in oil flows, with estimated economic losses of $600 million for Kazakhstan [2].

Despite these challenges, Kazakhstan's oil exports continue to be a significant contributor to the global energy market. The country's reliance on the CPC for approximately 80% of its crude oil exports underscores the importance of maintaining the operational integrity of the pipeline.

The CPC's instability has triggered market volatility, with disruptions in 2025 causing price swings in global crude markets [3]. For investors, the pipeline's future depends on geopolitical stability, regulatory resilience, and infrastructure diversification [4]. Kazakhstan's efforts to expand the BTC pipeline's capacity and invest in refining infrastructure aim to reduce reliance on Russian-controlled corridors, although these alternatives face technical and political challenges [2].

The CPC remains a critical artery for Kazakhstan's energy exports, but its long-term viability is contingent on navigating a volatile geopolitical landscape and operational fragility. While diversification efforts and legal reforms offer hope, the pipeline's reliance on Russian infrastructure and the broader instability in the Black Sea region pose persistent threats.

References:
[1] https://www.reuters.com/business/energy/caspian-pipeline-suspends-second-mooring-point-after-accident-2025-08-29/
[2] https://www.ainvest.com/news/geopolitical-operational-risks-caspian-pipeline-consortium-impact-energy-markets-2508/
[3] https://www.ainvest.com/news/cpc-mooring-suspension-catalyst-oil-market-realignment-investment-opportunities-2508/
[4] https://www.ainvest.com/news/geopolitical-operational-risks-caspian-pipeline-consortium-impact-energy-markets-2508/