South Caucasus Pipeline

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South Caucasus Pipeline
Location of South Caucasus Pipeline
Location of South Caucasus Pipeline
Location
Country Azerbaijan
Georgia
Turkey
General direction east–west
From Baku (Sangachal Terminal), Azerbaijan
Passes through Tbilisi
To Erzurum, Turkey
Runs alongside Baku–Tbilisi–Ceyhan pipeline
General information
Type Natural gas
Partners BP (28.8%)
SOCAR (16.7%)
Statoil (15.5%)
Lukoil (10%)
Total S.A. (10%)
Naftiran Intertrade (10%)
TPAO (9%)
Operator BP
Commissioned 2006
Technical information
Length 692 km (430 mi)
Maximum discharge 25 billion cubic metres per annum (880×10^9 cu ft/a)
Diameter 42 in (1,067 mm)

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.

History[edit]

On 21 May 2006, the commissioning gas was pumped to the pipeline from the Sangachal Terminal.[1] First deliveries through the pipeline commenced on 30 September 2006. Deliveries of gas from Shah Deniz gas field started on 15 December 2006.[2]

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

Description[edit]

The 42-inch (1,070 mm) diameter gas pipeline runs in the same corridor as the Baku–Tbilisi–Ceyhan pipeline. It is 692 kilometres (430 mi) long, of which 442 kilometres (275 mi) is laid in Azerbaijan and 248 kilometres (154 mi) in Georgia.[1] The initial capacity of the pipeline was 8.8 billion cubic metres (310 billion cubic feet) of gas per year.[5] For the second stage of the Shah Deniz development, the capacity would be increased up to 25 billion cubic metres (880 billion cubic feet) by adding additional looping and two new compressor stations, cost $3 billion.[6] As the pipeline has a potential of being connected to Turkmen and Kazakh producers through the planned Trans-Caspian Gas Pipeline, Azerbaijan has proposed to expand its capacity up to 60 billion cubic metres (2.1 trillion cubic feet) by building a second line of the pipeline.[7]

Economic impact[edit]

The first aim of pipeline is to supply Turkey and Georgia. As a transit country, Georgia has rights to take 5% of the annual gas flow through the pipeline in lieu of tariff and can purchase a further 0.5 billion cubic metres (18 billion cubic feet) of gas a year at a discounted price. In longer perspective South Caucasus Pipeline will supply Europe with Caspian natural gas through the planned Southern Gas Corridor pipelines, such as Trans Adriatic Pipeline and Trans-Anatolian gas pipeline.[6]

Project company[edit]

The pipeline is owned by the South Caucasus Pipeline Company, a consortium led by BP and Statoil. The shareholders of the consortium are:

The technical operator of pipeline is BP and commercial operator is Statoil.

See also[edit]

Footnotes[edit]

  1. ^ a b "SCP Commissioning Commences" (Press release). BP. 2006-06-01. Retrieved 2008-04-06. 
  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. (subscription required). Retrieved 2008-08-13. 
  4. ^ "BP turns on Georgia gas taps". Upstream Online (NHST Media Group). 2008-08-14. (subscription required). Retrieved 2008-08-14. 
  5. ^ "Shah Deniz taps primed". Upstream Online (NHST Media Group). 2006-09-14. (subscription required). Retrieved 2008-04-06. 
  6. ^ a b c 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. 
  7. ^ 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. 

References[edit]

  • International Energy Agency: Caspian oil and gas: The supply potential of Central Asia and Transcaucasia. OECD, Paris 1998, ISBN 92-64-16095-7
  • Charles van der Leeuw: Oil and gas in the Caucasus & Caspian: A history. Curzon, Richmond, Surrey 2000, ISBN 0-7007-1123-6
  • John Roberts: Caspian oil and gas: How far have we come and where are we going? In: Oil, transition and security in Central Asia. RoutledgeCurzon, London [u.a.] 2003, ISBN 0-415-31090-3

External links[edit]