THE SHAREHOLDERS of the Caspian Pipeline Consortium are reported to be interested in taking a stake the Burgas-Alexandroupolis pipeline, contrary to earlier statements. Chevron and KazMunaiGaz are considering linking participation in the project with Russia's plan to increase the capacity of the CPC pipeline, and Chevron is reputed to have endorsed Russian federal authorities' memorandum on the expansion apart from a demand to clear the consortium's $5.7bn debt immediately. Ahead of the signing of a deal to build the Burgas-Alexandroupolis pipeline, Caspian Pipeline Consortium released an official statement saying the company has no business interest in the project and its shareholders do not plan to negotiate acquiring a stake in it. However, Chevron's Moscow office has now "welcomed" the deal, while Kazakhstan-based KazMunaiGaz said it is considering buying a share in the pipeline. Caspian Pipeline Consortium is the owner of the only private pipeline in Russia which runs from Kazakhstan to Novorossiysk in Russia's south. The Russian government owns 24% of the company, Kazakhstan 19%, and Oman 7 %. Chevron holds 15%, a joint venture of Lukoil and BP holds 12.5%, while the Rosneft and Shell joint venture holds 7.5%. Chevron, a key private shareholder in Caspian Pipeline Consortium, is now understood to be determined to link its possible participation in the Burgas-Alexandroupolis project with plans to expand the CPC's capacity: the Russian authorities have proposed increasing the volume in the pipeline from 27m ton/yr to 65m ton/yr. Russia's Federal Property Management Agency has suggested financing the expansion by loans rather than by shareholders' own funds, and Chevron is close to agreeing the terms for this with Russian officials. Chevron and the Kazakh government have generally approved the plan with the exception of the condition that Caspian Consortium clears its $5.7bn debt immediately, according to a letter from Chevron vice-president George Kirkland to Russian prime minister Mikhail Fradkov. It is reported that Mr Kirkland declared his company's willingness to discuss business terms in exchange for participation in the Burgas-Alexandroupolis project.