South Caucasus Gas Pipeline

From Global Energy Monitor
This article is part of the Global Fossil Infrastructure Tracker, a project of 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: SOCAR Midstream Operations LLC[3]
    • Originally BP; Statoil
  • Owner: South Caucasus Pipeline Company Ltd [100%][4]
  • Parent company: BP [29.99%]; Lukoil [19.99%]; TPAO [19%]; NOIC (National Iranian Oil Company, via its subsidiary Naftiran Trading Company Ltd, or NICO[5]) [10%]; State Oil Company of the Azerbaijan Republic [14.35%]; Southern Gas Corridor CJSC [6.67%][6][7]
    • Originally BP [28.83%]; TPAO [19%]; Petronas [15.5%]; SOCAR [10%]; Lukoil [10%]; NIOC (via Naftiran Intertrade Company Ltd, or NICO) [10%]; SGC [6.67%]
  • Capacity: 24.04 bcm/y[2]
  • Length: 692 km[2]
  • Diameter: 42 in[2]
  • Status: Operating[2]
  • Start year: 2006[2]
  • Cost: US$ 60 million (EBRD), 70 million (LUKoil Midstream),[8]
  • Financing: limited recourse financing extended by EBRD and various commercial banks to SPVs owned by SOCAR and LUKoil to finance their equity in SCP,[8]
  • Associated infrastructure: Trans-Adriatic Gas Pipeline, Trans-Anatolian Gas Pipeline

South Caucasus Pipeline expansion (SCPx)

  • Operator: SOCAR Midstream Operations LLC[3]
    • Originally BP; Statoil
  • Owner: South Caucasus Pipeline Company Ltd [100%][4]
  • Parent company: BP [29.99%]; Lukoil [19.99%]; TPAO [19%]; NOIC (National Iranian Oil Company, via its subsidiary Naftiran Trading Company Ltd, or NICO[5]) [10%]; State Oil Company of the Azerbaijan Republic [14.35%]; Southern Gas Corridor CJSC [6.67%][6][7]
    • Originally BP [28.83%]; TPAO [19%]; Petronas [15.5%]; SOCAR [10%]; Lukoil [10%]; NIOC (via Naftiran Intertrade Company Ltd, or NICO) [10%]; SGC [6.67%]
  • Capacity: 24.04 bcm/y[2]
  • Length: 489 km[2]
  • Diameter: 48 in[2]
  • Status: Operating[2]
  • Start year: 2018[2]
  • Cost: US$ 4.7 billion[9]
  • Financing:
  • Associated infrastructure: Trans-Adriatic Gas Pipeline, Trans-Anatolian Gas Pipeline


South Caucasus Pipeline Future Expansion (SCPFx)

  • Operator: SOCAR Midstream Operations LLC[3]
    • Originally BP; Statoil
  • Owner: South Caucasus Pipeline Company Ltd [100%][4]
  • Parent company: BP [29.99%]; Lukoil [19.99%]; TPAO [19%]; NOIC (National Iranian Oil Company, via its subsidiary Naftiran Trading Company Ltd, or NICO[5]) [10%]; State Oil Company of the Azerbaijan Republic [14.35%]; Southern Gas Corridor CJSC [6.67%][6][7]
    • Originally BP [28.83%]; TPAO [19%]; Petronas [15.5%]; SOCAR [10%]; Lukoil [10%]; NIOC (via Naftiran Intertrade Company Ltd, or NICO) [10%]; SGC [6.67%]
  • Capacity: 5 bcm/year
  • Length: 93 km
  • Diameter: 48 in[2]
  • Status: Proposed[2]
  • Start year:
  • Cost:
  • Financing:
  • Associated infrastructure: Trans-Adriatic Gas Pipeline, Trans-Anatolian Gas Pipeline

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.[10]

On 12 August 2008, the pipeline's operator BP closed it for safety reasons because of the 2008 South Ossetia War.[11] Gas supplies were resumed on 14 August 2008.[12]

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.[13]

The initial capacity of the pipeline was 8.8 billion cubic meters (310 billion cubic feet) of gas per year.[14] 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.[15] 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.[16]

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.[15]

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 carried out an extension by putting two additional compressor stations in Georgia and Turkey and constructing a new 48 inch pipeline looping SCP at Azerbaijani and Georgian territories. As a result of the expansion, SCP’s throughput capacity reached approximately 24.04 bcma, which tripled the current overall transportation capacity of the system. SCP system`s total capacity may be expanded further up to 31 bcma if needed.[2]

Articles and resources

References

  1. "South Caucasus pipeline | Who we are | Home". Azerbaijan. Retrieved 2022-08-12.
  2. 2.00 2.01 2.02 2.03 2.04 2.05 2.06 2.07 2.08 2.09 2.10 2.11 2.12 2.13 2.14 Southern Caucasus Pipeline, Southern Gas Corridor, archived from the original on Aug. 31, 2021.
  3. 3.0 3.1 3.2 "South Caucasus pipeline | Who we are | Home". Azerbaijan. Retrieved 2022-08-11.
  4. 4.0 4.1 4.2 "https://www.sgc.az/en/project/scp". Retrieved 2022-08-11. External link in |title= (help)
  5. 5.0 5.1 5.2 "https://transcaspianresources.us/south-caucasus-pipeline". Retrieved 2022-08-11. External link in |title= (help)
  6. 6.0 6.1 6.2 "Gas supplies to Turkey from Shah Deniz to be suspended in Aug due to maintenance of South Caucasus Pipeline". interfax.com. Retrieved 2022-08-11.
  7. 7.0 7.1 7.2 "https://www.sgc.az/en". Retrieved 2022-08-11. External link in |title= (help)
  8. 8.0 8.1 Khodadad, Nabil. "Financing Cross-Border Pipelines" (PDF). energycharter.org. Retrieved 2022-08-12.
  9. "$ 4 bln spent on South Caucasus Pipeline Expansion project". Report News Agency. Retrieved 2022-08-12.
  10. Azerbaijan's Shah Deniz Field On Stream, OilVoice, Dec. 15, 2006, archived from the original on Mar. 6, 2016, accessed Aug. 31, 2021.
  11. BP shuts in Georgia links, Upstream Online, Aug. 12, 2008, accessed Aug. 31, 2021.
  12. BP turns on Georgia gas taps, Upstream Online, Aug. 14, 2008, accessed Aug. 31, 2021.
  13. SCP Commissioning Commences, BP, Jun. 6, 2008, archived from the original on Aug. 11, 2010, archived accessed Aug. 31, 2021.
  14. Shah Deniz Taps Primed, Upstream Online, Sep. 14, 2006, accessed Aug. 31, 2021.
  15. 15.0 15.1 Vladimir Socor, SCP, TANAP, TAP: Segments of the Southern Gas Corridor to Europe, The Jamestown Foundation, Jan. 15, 2014, accessed Aug. 31, 2021.
  16. Azerbaijan Drives the Planning on Trans-Anatolia Gas Pipeline Project, The Jamestown Foundation, Sep. 11, 2012, accessed Aug. 31, 2021.