Crude oil loadings at key Black Sea ports in Russia and Ukraine continue to be halted amid a raging storm that has left an estimated two million people without power, according to Agence France Presse.
Hurricane level winds, massive snowfall and heavy rain shut down electricity lines and led to major flooding. Train transport along the Russian Black Sea coast has also been halted after tracks fell into the sea.
The regional storm has affected the Caspian Pipeline Consortium (CPC) oil terminal on Russia’s portion of the Black Sea, and it has also halted loadings at the Novorossiysk facilities. According to the CPC, waves of up to eight meters high were ravaging the region on Monday morning.
Russian Transpect PJSC pipeline operator has stated that the storm could last through the week, as reported by Bloomberg.
The CPC oil terminal has also forced a reduction in Kazakhstan’s production, which feeds this terminal as the terminal is already at near-full capacity.
As a result, as of early Monday morning, Kazakhstan’s oil output dropped by 15% over the course of the previous 24 hours, according to Bloomberg.
According to Upstream, citing the Kazakh Energy Ministry, 95% of the output reduction is being shouldered by the Chevron-led Tengizchevroil venture.
Chevron is the largest private producer in Kazakhstan, with stakes in the country’s two largest oil-producing fields, Tengiz and Karachaganak.
Kazakhstan transports the bulk of its crude oil–some 80%–for export via the CPC. Overall, Kazakhstan has been seeking alternatives to transporting the bulk of its oil through the Russian Black Sea in an effort to reduce export dependence and exposure to Western sanctions, despite the fact that the CPC is not restricted in this manner.