BAKU, Azerbaijan, April 23. The Middle Corridor is becoming increasingly important as it is one of the routes operating without major disruptions, Kuanysh Keskinbayev, Deputy General Director for Commercial Affairs at KMG Kashagan B.V., said, Trend reports.
He made the statement at the 2nd Forum on Logistics and Oil Trade in the Caspian and Central Asian Regions in Baku.
“The corridor’s capacity for exporting Kazakhstani oil is up to 5 million tons, and if volumes need to be increased, investments will be required in additional ports, tankers, and related infrastructure,” he noted.
According to him, the cost of transportation along this route is usually higher than via the Caspian Pipeline Consortium (CPC) system; however, the higher price of Azerbaijani oil partially offsets this difference.
“In terms of net export profitability, the gap may be smaller than the tariffs suggest. Nevertheless, when the CPC is fully operational, it often remains the most profitable route,” Keskinbayev added.