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]

Location

The pipeline runs from Baku, Azerbaijan through Tbilisi, Georgia to Erzurum, Turkey.

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Project Details

  • Operator: BP; Statoil
  • Parent Company: BP 28.8%; TPAO 19%; SOCAR 16.7%; Petronas 15.5%; Lukoil 10%; Naftiran Intertrade 10%
  • 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.[2]

On 12 August 2008, the pipeline's operator BP closed it for safety reasons because of the 2008 South Ossetia War.[3] Gas supplies were resumed on 14 August 2008.[4]

Description

The 42-in (1,070 mm) diameter gas pipeline runs through the same corridor as the Baku–Tbilisi–Ceyhan pipeline until Erzurum, where Baku–Tbilisi–Ceyhan pipeline turns south to the Mediterranean. It is 692 km (430 mi) long, of which 442 km (275 mi) is in Azerbaijan and 248 km (154 mi) in Georgia.[5] The initial capacity of the pipeline was 8.8 billion cubic meters (310 billion cubic feet) of gas per year.[6] 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 $3 billion.[7] 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.[8]

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.[7]

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 will expand the pipeline through capacity extension by putting two additional compressor stations in Georgia and Turkey. This will almost triple the current transportation capacity of the pipeline up to 20 bcm/year. [9]

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 April 2018
  2. "Azerbaijan's Shah Deniz Field On Stream". OilVoice. 2006-12-15. Retrieved 2006-12-18.
  3. "BP shuts in Georgia links". Upstream Online. NHST Media Group. 2008-08-12. Retrieved 2008-08-13.
  4. "BP turns on Georgia gas taps". Upstream Online. NHST Media Group. 2008-08-14. Retrieved 2008-08-14.
  5. [ttp://www.bp.com/genericarticle.do?categoryId=9006615&contentId=7018471 SCP Commissioning Commences], BP, Apr. 6, 2008
  6. {{cite news | title = Shah Deniz taps primed | newspaper = Upstream Online | publisher = NHST Media Group | url = http://www.upstreamonline.com/live/article119108.ece | date = 2006-09-14 | accessdate = 2008-04-06
  7. 7.0 7.1 Socor, Vladimir (15 January 2014). "SCP, TANAP, TAP: Segments of the Southern Gas Corridor to Europe". Eurasia Daily Monitor. 11 (8). Heritage Foundation. Retrieved 18 January 2014.
  8. Socor, Vladimir (2012-09-11). "Azerbaijan Drives the Planning on Trans-Anatolia Gas Pipeline Project". Eurasia Daily Monitor. 9 (164). Jamestown Foundation. Retrieved 2012-09-12.
  9. http://www.bp.com/en_az/caspian/operationsprojects/pipelines/SCP.html

Related SourceWatch 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].