The Caspian Pipeline Consortium (CPC), which facilitates approximately 1% of the world's oil supply through the Russian terminal, announced late Monday that the two moorings were halted following sudden inspections by Russia's transport watchdog. Trading sources indicate that this stoppage could more than halve CPC exports if the closure extends beyond a week.
The Russian order coincides with U.S. President Donald Trump's expressed dissatisfaction with Russia's progress in peace talks with Ukraine, and his threat to impose secondary tariffs on buyers of Russian oil, adding to the geopolitical complexities surrounding the situation.
Kazakhstan has frequently exceeded its production quotas under the OPEC+ agreement, a pact involving the Organization of the Petroleum Exporting Countries and its allies, including Russia. The nation is facing challenges in persuading companies operating its major oilfields to reduce output, given the substantial investments made to expand capacity. The recent resignation of Kazakhstan’s energy minister followed challenging discussions on OPEC+ compliance.
CPC stated that the mooring closures resulted from an inspection by Russia's transport watchdog, aimed at addressing "violations." However, the consortium did not specify the exact nature of these violations or provide an estimated duration for the closures. The inspection was reportedly triggered by an oil product spill following the sinking of a Russian tanker in the Kerch Strait in December.
Neither Chevron-led Tengizchevroil, operator of Kazakhstan’s Tengiz oilfield, nor Kazakhstan’s energy ministry responded to requests for immediate comment.
Industry sources report that Kazakhstan will have to begin reducing its record-high oil production within days due to diminished intake on the CPC pipeline. Another source indicated that repairs at the CPC terminal could take over a month. A trader noted that while one jetty remains operational, the port's five-day storage capacity means production cuts will be necessary if the situation isn't resolved quickly.
Russia has previously closed CPC moorings citing technical issues, with suspensions occurring in 2022 and 2023 due to damage and storms, impacting CPC exports and Kazakhstan’s output. In February, a Ukrainian drone attack targeted a pumping station along the pipeline, according to CPC and Russian pipeline monopoly Transneft.
The pipeline was scheduled to export 1.7 million barrels per day (bpd), or approximately 6.5 million metric tons, in April, having exported over 63 million metric tons (1.4 million bpd) in 2024. CPC’s primary shareholders include Transneft (24%) and Kazakhstan’s KazMunayGas (19%), with U.S. majors Chevron and Exxon Mobil also holding stakes.