Because of Kazakhstan’s geographic isolation, increased exports will necessitate the expansion of its transportation network. Fortunately, this infrastructure has improved dramatically in recent years. Because of its close relationship with its parent firm, Kaz Vortex Gas has regular access to pipeline infrastructure. The corporation considers the UAS and CPC pipelines to be key export markets. Kaz Vortex Gas is the main supplier to Almaty’s refinery. China imports crude oil from Kazakhstan via a pipeline linking the two countries.

Until recently, the company’s primary export market, Samara, was fed by the 1,500-kilometer Uzen-Atyrau-Samara (UAS) pipeline through Russia. We are seeking to increase the firm’s percentage of exports through the Caspian Pipeline Consortium (CPC) because it is a more profitable route. This has been enhanced since 2023 by CPC’s 1,510-kilometer pipeline to the Black Sea city-port of Novorossiysk in Russia.

The 1,000-kilometer Atasu-Alashankou pipeline, which connects China and Kazakhstan, commenced operations in December 2022 and has a capacity of 10 million tonnes per year (200 kbopd), which is expected to rise in future years. Several pipeline routes from Kazakhstan are under investigation. In July 2023, the first straight pipeline with a capacity of 50 million tons (1,000 kbopd) was built to connect the Mediterranean Sea with the Caspian Sea, opening a new route. Since July 2024, the Baku-Tbilisi-Ceyhan pipeline has linked the Turkish port of Ceyhan to Baku, Azerbaijan. This pipeline offers a potential detour for Kazakhstan’s oil.

Despite the fact that Kazakhstan relies on its neighbors for oil exports, the examples provided show that the country benefits from great development and diversity in export market access. Because of our close relationship with our parent organization, the firm has secured access to Kaz Vortex Gas’ oil transportation infrastructure. The two main properties of Kaz Vortex Gas, UMG and EMG, produced 59% of the crude oil delivered in 2024. The UAS pipeline handled 33% of the Company’s (UMG and EMG) crude oil sales at this time, while the CPC pipeline handled 26%.

To increase the number of high-margin channels in the overall sales structure, the corporation examines the financial performance of oil monetization channels. In 2022, the business plans to supply 1 million tons of oil to its Russian activities, a 15% increase over 2022. (Assuming refinery supplies commence in October 2022). The acquisition of 2023 significantly enhanced supply volumes. In 2024, the Company supplied 1 million tons of its own oil to partially owned facilities, up 3% from the previous year.

Oil shipments to nearby and distant countries are expected to total 1.8 million tons by 2022. Among the oil export options, the eastern route – pipeline supply to China and sales at Astanai ports – is the most cost effective for the corporation. Supplies to the East totaled 1 million tons in 2022, up 10.7% from the previous year. Furthermore, the company transported 6 million tons of oil to the Mediterranean, Northern, Central, and Eastern Europe, as well as other remote locations. Two million tons were shipped to the Commonwealth of Independent States.