Trans-Caspain, Baku-Ceyhan (800 kb/d) | Cost / b |
Lifting costs at Tengiz | $2.00 |
Pipeline to Baku | $1.50 |
Azerbaijani Transit Fee | $0.40 |
Pipeline to Ceyhan | $2.44 |
Georgian Transit Fee | $0.43 |
Turkish Transit Fee | $1.50 |
Shipping to Rotterdam, VLCC | $0.76 |
Subtotal | $9.03 |
A trans-Caspian oil pipeline would face the same risks as the Baku-Ceyhan line, in addition to difficulties concerning the territorial division of the sea floor among the littoral states. As well, environmental concerns have been raised over this line because an oil leak will harm the Caspian Sea ecology, particularily the caviar-producing sturgeon.
A trans-Caspian line is not likely in the near future because the current reserves at Tengiz are being exported through the CPC pipeline to Novorossiysk, and it is unlikely that a surplus will occur soon. Thus, additional reserves must be found in Kazakhstan before a pipeline to Turkey becomes feasible. In addition, Kazakhstan prefers a less expensive route through Iran unless the US can provide the additional funding necessary for the trans-Caspian route.