Oil & Gas Transportation of Kazakhstan prepares to competition

/IRBIS, Oct 01, 01/ - REUTERS informs that government company, which is controlling 90% of oil and gas transportation in Kazakhstan, currently prepares to strict competition from new pipeline projects, changes tariff policy and restructures business. First deputy director of Oil & Gas Transportation of Kazakhstan (OGT) reported that the company plans to invest up to $1bn into modernization and restructuring of the affiliated companies by 2005. Among them are two former monopolies KazTransGas and KazTransOil. The reform would imply selling of some "non-profile" assets and affiliated companies allowing the head company for more effective management. At present, KazTransOil possesses largest export pipeline in Kazakhstan, Atyrau-Samara with annual capacity of 15m tons. Last year volume of KazTransOil transportation reached 27.8m with total production volume of 35.3m. The company will face strict competition from new transportation projects. The major competitor is Caspian Pipeline Consortium (CPC), which will be used for transportation of Tengiz oil by Chevron. The total capacity of CPC is 28m tons of oil on the first stage, in future - 56m tons. The CPC will be loaded mainly with Tengiz oil but would also create route for oil currently transported by OGT. So, OGT would create new transportation tariff policy in order to attract companies to OGT. "Lowering of tariffs is only one option". Current rate is anyway comparable with what is planned to set for CPC.