Exclusive: Kazakhstan's Direct Oil Supply to China Amidst CPC Damage
In a recent development, Kazakhstan is set to directly supply crude oil to China from the Kashagan field, bypassing the damaged Black Sea terminal of the Caspian Pipeline Consortium (CPC). This move comes as a response to the damage inflicted by a Ukrainian drone, which has disrupted the CPC's operations. The CPC, a significant player in global crude supply, has had to reduce exports due to the damage to its single-point mooring (SPM) infrastructure.
The Kashagan field, located in the northern Caspian Sea, is a vast offshore oil and gas field, named after the 19th-century Kazakh poet Kashagan Kurzhimanuly. It is one of the largest fields discovered in the past 40 years. The field is primarily exported via the CPC to the Black Sea port of Novorossiysk for further transportation. However, due to the damage, Kazakhstan is now exploring alternative routes.
China, the world's largest importer of oil, will receive crude oil from Kashagan via the Atasu-Alashankou pipeline. The NCOC consortium, which includes China's CNPC and Japan's Inpex, will supply oil to China. CNPC is expected to ship around 30,000 tons, while Inpex will provide about 20,000 tons. The Atasu-Alashankou pipeline usually carries oil from other fields in Kazakhstan but is now being utilized to ensure a steady supply of oil to China.
Kazakhstan's energy ministry confirmed their efforts to find additional routes for Caspian oil and redistribute volumes to maintain exports. The country had planned to ship 1.0 million tons via the Atasu-Alashankou route in 2025, but this may be adjusted due to the current situation. In the first 10 months of 2025, 0.858 million tons of oil were exported, and the average monthly deliveries through this route are 85,000–86,000 tons.
This development highlights the challenges faced by the energy industry due to geopolitical tensions and the need for flexible supply chains. As Kazakhstan adapts to the new circumstances, it will be interesting to see how the market responds and whether this direct supply route becomes a permanent feature of the oil trade landscape.
