According to a release published on the website of the Caspian Pipeline Consortium Company, the CPC pipeline, through which 85% of the crude oil imported from Romania was brought in 2021, must stop its activity for 30 days, which will generate new increases in fuel prices, says the Intelligent Energy Association (AEI).
The CPC pipeline system is one of the largest energy investment projects in the CIS that also involves foreign capital. The length of the Tengiz – Novorossiysk pipeline is of 1,511 km. This route brings in more than two-thirds of all oil exports from Kazakhstan, along with crude oil from Russian fields, including the Caspian region. The CPC marine terminal is equipped with three single-point berths (SPM), allowing the safe loading of tanks at significant distances offshore, including in adverse weather conditions.
CPC shareholders: Federal Agency for the Administration of State Property represented by Transneft (trustee) – 24%, CPC Company – 7%, KazMunayGas – 19%; Kazakhstan Pipeline Ventures LLC – 1.75%, Chevron Caspian Pipeline Consortium Company – 15%, LUKARCO B.V. – 12.5%, Mobil Caspian Pipeline Company – 7.5%, Rosneft-Shell Caspian Ventures Limited – 7.5%, BG Overseas Holding En Limited – 22% International N.A. N.V. – 2%, and Oryx Caspian Pipeline LLC – 1.75%.
“About 2 weeks ago I stressed the fact that there are high risks that will influence the security of Romania’s fuel supply, which unfortunately come true: the alternative routes to the CPC (which still works) for oil supply are very limited and impactful high in price (Georgia, Turkey, the Mediterranean Basin), but which are likely to be accessed in the future and will be reflected in price increases for petrol and diesel; the sanctions adopted by the EU on Russia (from autumn Bulgaria and Hungary will be able to sell the product only at national level), determine Romania to remain without a part of the oil products that came from these countries; Romania’s dependence on 78% of crude oil and petroleum products’ imports (most from the Russian Federation) creates a high risk both on Romania’s security of supply, but also a high price volatility at any international incident in the crude oil area,” says Dumitru Chisăliță, AEI president.
“The increase in the price of insurance for ships in the Black Sea will continue in the future as a result of the war in the area and the drifting mines in the Black Sea. In the context of the effects caused by the war in Ukraine, there are also growing concerns about the possible failures of crude oil delivery in the port of Constanța. Ukraine is willing to take all the surplus quantities from the market at a price well above the market in the area, which will create another factor in the increase of the price of gasoline and diesel,” he added.
