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Kazakhstan begins historic oil shipments to Azerbaijan, bypassing Russian routes

Kazakhstan’s first Kashagan oil shipment through Azerbaijan marks a major shift in Central Asian energy routes, as the nation moves to reduce its dependence on Russian transit by over 80% through expanded pipeline partnerships.

byOlena Mukhina

30/01/2025

2 minute read

Kazakhstan’s capital city of Nur-Sultan in 2012 (Astana at the time). Source

Kazakhstan begins historic oil shipments to Azerbaijan, bypassing Russian routes

Kazakhstan has dispatched its first oil tanker from the Kashagan oil field to Azerbaijan for transport via the Baku-Tbilisi-Ceyhan (BTC) pipeline, as reported by the national oil and gas company, KazMunayGas, according to New Voice.

Kazakhstan’s recent decision to send its first oil shipment from the Kashagan field through Azerbaijan is part of a broader strategy to reduce its dependence on Russian transit routes. The move is expected to reduce Kazakhstan’s reliance on Russian routes, reducing oil shipments through Russia by over 80%.

“The first batch of oil from Kashagan has been sent to the port of Baku. The Kazakh tanker Taraz, carrying Kashagan oil, departed from the port of Aktau for Baku. The oil will then be transported via the Baku-Tbilisi-Ceyhan pipeline system to the Mediterranean Sea,” KazMunayGas announced.

In an effort to diversify its oil export routes, Kazakhstan began shipments via the BTC pipeline last year. KazMunayGas and Azerbaijan’s state oil company, SOCAR, signed an agreement to transport 1.5 million tons of Kazakh oil annually through the pipeline.

In March 2024, KMG and SOCAR agreed to progressively increase the oil transit volume through Azerbaijan to 2.2 million tons per year.

Simultaneously, the first test shipment of oil from the Kashagan field was made through the Caspian Sea to Azerbaijan. Kazakhstan, which lacks direct access to the world’s oceans, relies on these routes.

In November 2024, Energy Minister Almasadam Satkaliyev indicated that Kazakhstan is exploring the possibility of boosting the annual oil supply through the BTC pipeline to 20 million tons.

The Kashagan oil field, located off Kazakhstan’s Caspian Sea coast near Atyrau, is one of the largest discoveries in recent decades. Its reserves are estimated at between 9 and 13 billion barrels of oil. Commercial production utilizing artificial islands began in the fall of 2016.

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