Kazakhstan Negotiates Resumption of Oil Transit via Azerbaijan Pipelines

Kazakhstan is actively negotiating with Azerbaijan to resume oil exports through the Baku-Tbilisi-Ceyhan (BTC) pipeline, which has the capacity to transport nearly twice its current volume. The suspension of Kazakh oil transit via BTC was linked to contamination concerns with organic chlorides found in some Azerbaijani crude oil shipments, prompting isolation of affected tanks and quality assessments. Meanwhile, Kazakhstan is also exploring the possibility of using the Baku-Supsa pipeline as an alternative export route, though this option is currently more costly due to additional loading and unloading operations. Despite disruptions, BTC continues to transport oil primarily from the Azeri-Chirag-Guneshli block and Shah Deniz condensate, with potential for increased regional throughput if economic conditions favor shippers. Kazakhstan's energy officials emphasize efforts to diversify export routes beyond reliance on Russian pipelines, reflecting strategic considerations in regional oil transit. No significant modernization investment is deemed necessary for the Baku-Supsa pipeline if it is utilized for Kazakh oil exports.