South Caucasus Gas Pipeline

From Global Energy Monitor
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South Caucasus Gas Pipeline, also called the Deniz Field—Shakh Erzurum Pipeline, the Baku–Tbilisi–Erzurum Pipeline, the BTE Pipeline, or the Shah—Deniz Pipeline, is an operating natural gas pipeline.[1][2]

Location

The pipeline runs from Baku, Azerbaijan through Tbilisi, Georgia to the Georgia/Turkey border, connecting with the Trans-Anatolian Gas Pipeline.[2]

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Project Details

  • Operator: BP; Statoil
  • Parent Company: BP (28.83%), TPAO (19%), Petronas (15.5%), SOCAR (10%), Lukoil (10%), NICO (10%), SGC (6.67%)
  • Current capacity: 25 billion cubic meters per year
  • Length: 430 miles / 692 kilometers
  • Diameter: 42 inches
  • Status: Operating
  • Start Year: 2006

Background

The South Caucasus Pipeline (also known as Baku–Tbilisi–Erzurum Pipeline, BTE pipeline, or Shah Deniz Pipeline) is a natural gas pipeline from the Shah Deniz gas field in the Azerbaijan sector of the Caspian Sea to Turkey. It runs parallel to the Baku–Tbilisi–Ceyhan pipeline (oil).

Deliveries from the Shah Deniz gas through the pipeline began on 15 December 2006.[3]

On 12 August 2008, the pipeline's operator BP closed it for safety reasons because of the 2008 South Ossetia War.[4] Gas supplies were resumed on 14 August 2008.[5]

Description

The 42-in (1,070 mm) diameter gas pipeline runs through the same corridor as the Baku-Tbilisi-Ceyhan Pipeline until Erzurum, where the Baku-Tbilisi-Ceyhan Pipeline turns south to the Mediterranean. It is 692 kilometers long, of which 442 kilometers is in Azerbaijan and 248 kilometers is in Georgia.[6]

The initial capacity of the pipeline was 8.8 billion cubic meters (310 billion cubic feet) of gas per year.[7] For the second stage of the Shah Deniz development, the capacity was increased to 25 billion cubic meters (880 billion cubic feet) by adding additional looping and two new compressor stations at a cost of US$3 billion.[8] As the pipeline has the potential to be connected to Turkmen and Kazakh producers through the planned Trans-Caspian Gas Pipeline, Azerbaijan has proposed expanding its capacity up to 60 billion cubic meters (2.1 trillion cubic feet) by building a second line.[9]

Economic impact

The main purpose of the pipeline is to supply Turkey and Georgia. As a transit country, Georgia has the rights to take 5% of the annual gas flow through the pipeline in lieu of a tariff and can purchase a further .5 billion cubic meters (18 billion cubic feet) of gas a year at a discounted price. In the longer term, the pipeline will supply Europe with Caspian natural gas through the planned Southern Gas Corridor pipelines, such as the Trans Adriatic Pipeline and Trans-Anatolian gas pipeline.[8]

Project company

The pipeline is owned by the South Caucasus Pipeline Company, a consortium led by BP and SOCAR. The technical operator of the pipeline is BP and the commercial operator is Statoil. According to the Production Sharing Agreement, commercial operation of the SCP was transferred to SOCAR on 1 January 2015.

South Caucasus Pipeline expansion (SCPx)

As a part of the Shah Deniz Full Field Development (FFD), otherwise called the Shahdeniz-2 project, BP planned a through capacity extension by putting two additional compressor stations in Georgia and Turkey. This would almost triple the current transportation capacity of the pipeline to 23.4 billion cubic meters per year.[2]

This capacity increase would be able to accommodate an additional 16 bcm gas coming from the SD-2 project.

Articles and resources

References

  1. South Caucasus Pipeline, Wikipedia, accessed Aug. 31, 2021.
  2. 2.0 2.1 2.2 Southern Caucasus Pipeline, Southern Gas Corridor, archived from the original on Aug. 31, 2021.
  3. Azerbaijan's Shah Deniz Field On Stream, OilVoice, Dec. 15, 2006, archived from the original on Mar. 6, 2016, accessed Aug. 31, 2021.
  4. BP shuts in Georgia links, Upstream Online, Aug. 12, 2008, accessed Aug. 31, 2021.
  5. BP turns on Georgia gas taps, Upstream Online, Aug. 14, 2008, accessed Aug. 31, 2021.
  6. SCP Commissioning Commences, BP, Jun. 6, 2008, archived from the original on Aug. 11, 2010, archived accessed Aug. 31, 2021.
  7. Shah Deniz Taps Primed, Upstream Online, Sep. 14, 2006, accessed Aug. 31, 2021.
  8. 8.0 8.1 Vladimir Socor, SCP, TANAP, TAP: Segments of the Southern Gas Corridor to Europe, The Jamestown Foundation, Jan. 15, 2014, accessed Aug. 31, 2021.
  9. Azerbaijan Drives the Planning on Trans-Anatolia Gas Pipeline Project, The Jamestown Foundation, Sep. 11, 2012, accessed Aug. 31, 2021.

Related GEM.wiki articles

Natural Gas Pipelines in Central Asia

External resources

External articles

Wikipedia also has an article on South Caucusus Pipeline (South Caucasus Pipeline). This article may use content from the Wikipedia article under the terms of the Creative Commons Attribution-ShareAlike 3.0 Unported License].