International Cooperation

Caspian Pipeline Consortium (CPC)

The CPC pipeline system is one of the largest investment projects in the energy sector with the involvement of foreign capital in the CIS. The length of the Tengiz – Novorossiysk pipeline connecting oilfields in Western Kazakhstan with the Novorossiysk sea terminal is 1,511 km.

The initial throughput capacity of the Tengiz – Novorossiysk oil pipeline stood at 28.2 MTPA. In 2010, the CPC governing bodies decided upon investments within the project of expanding the CPC pipeline throughput capacity to 67 MTPA (hereinafter: the Expansion Project). The Expansion Project was officially completed in 2018.

During 2018, Transneft exercised trust management of 24% of CPC-R’s and CPC-K’sThe organisations comprising the Caspian Pipeline Consortium and registered in Russia and in Kazakhstan respectively shares being in state ownership of the Russian Federation. In March 2018, 100% of the shares of CPC Company, holding 7% of CPC-R’s and CPC-K’s shares and 100% of CPC Investments Company’s shares, were transferred into the ownership of Transneft, as well as 100% of the shares of CPC Investments Company, which is the lender of CPC-R.

In 2018, CPC shipped 61.1 million tonnes of oil at the marine terminal in Novorossiysk, including 54.3 million tonnes of oil from Kazakhstan shippers and 6.8 million tonnes of oil from Russian shippers. The volume shipped at CPC’s marine terminal in Novorossiysk went up by 11% year-on-year.

In 2018, CPC kept repaying its debt to shareholders. In 2018, CTP paid a total of USD 207.3 million in favour of the Russian Federation, and USD 83.4 in favour of CTP Investments Company. The interest revenue tax transferred by CPC Investments Company to the budget of the Russian Federation amounted to USD 20.9 million.

The International Association of Oil Transporters

Transneft is a member of the International Association of Oil Transporters (IAOT), established in 2013 in the Czech Republic to deepen and develop cooperation in the field of pipeline transportation of oil and petroleum products.

In 2018, a comparative analysis of energy efficiency benchmarking results among the IAOT participants covering 2017 and six months of 2018 was performed in accordance with the Energy Efficiency Benchmarking Method at Pipeline Transport Facilities previously developed by the Pipeline Transport Institute (PTI) for the Association, and recommendations for power consumption reduction were developed. Their implementation resulted in a 7.5% reduction in the average specific electricity consumption by member companies of the Association in 2016-2018.

Furthermore, the first international research to practice conference “Argus Oil Pipeline Systems 2018: Focus on Sustainability” was held in Prague, the Czech Republic, under the auspices of the IAOT. It attracted more than 100 participants representing European oil transportation infrastructure operators, research and production enterprises, energy institutions and the expert community, and was positively received. During the event, Transneft introduced innovative technical solutions applied by the Company to its partners. They were highly appreciated by the professional community.