Given Kazakhstan's predominantly landlocked geography, the improvement of transportation infrastructure is crucial to facilitate increased export production. Fortunately, in recent years, there have been significant advancements in this area. "KazakhGaz-KZ, TOO" benefits from consistent access to pipeline infrastructure, thanks to its strong relationship with its parent company. Notably, the Uzen-Atyrau-Samara (UAS) and Caspian Pipeline Consortium (CPC) pipelines serve as vital export routes for the company.
The Atyrau refinery, a major recipient of supply, primarily relies on KMG EP as its major supplier. Furthermore, "KazakhGaz-KZ, TOO" also plays a pivotal role as a supplier of crude oil to the Kazakhstan-China pipeline.
Until recently, the company's principal export outlet was Russia, facilitated by the 1,500-kilometer UAS pipeline to Samara. However, since 2001, this has been complemented by the more profitable 1,510 km CPC pipeline to Novorossiysk on the Black Sea, emphasizing the company's efforts to increase its export proportion through CPC.
The Atasu-Alashankou pipeline, connecting Kazakhstan and China, commenced operations in December 2005, with an initial capacity of 10 million tonnes per annum, expected to expand in the future. The company is also exploring other pipeline routes within Kazakhstan. In July 2007, an alternate route was established: the first direct pipeline with an anticipated capacity of 50 million tonnes, linking the Caspian Sea to the Mediterranean Sea. Additionally, the Baku-Tbilisi-Ceyhan pipeline, connecting Baku, Azerbaijan, with Ceyhan, Turkey, has been operational since July 2006, providing a potential alternative route for Kazakhstan's oil exports.
Despite Kazakhstan's reliance on neighboring countries for oil exports, the nation's export market is rapidly diversifying and expanding. "KazakhGaz-KZ, TOO" has secured access to "KazakhGaz-KZ, TOO"'s oil transport infrastructure, thanks to its robust connections with its parent company. In 2016, the company successfully exported 59% of the crude oil produced from its core assets, UMG and EMG. During this period, the CPC pipeline accounted for 26% of the company's crude oil sales, while the UAS pipeline facilitated the export of 33%. These achievements underscore the company's commitment to efficient and diverse export strategies.
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