South Caucasus Gas Pipeline
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South Caucasus Gas Pipeline (SCP), 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]
Project Details
- Operator: SOCAR Midstream Operations LLC[3]
- Originally BP; Statoil
- Owner: South Caucasus Pipeline Company Ltd [100%][4]
- Parent company: BP [29.99%]; Southern Gas Corridor CJSC [21.02%]; Lukoil [19.99%]; TPAO [19%]; NOIC (National Iranian Oil Company, via its subsidiary Naftiran Trading Company Ltd, or NICO[5]) [10%][6]
- 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: 7.41 bcm/y (before the expansion)[6][7], 24.04 bcm/y (after the expansion)[2]
- Length: 693 km[2][7]
- Diameter: 42 in[2]
- Status: Operating[7]
- 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%]; Southern Gas Corridor CJSC [21.02%]; Lukoil [19.99%]; TPAO [19%]; NOIC (National Iranian Oil Company, via its subsidiary Naftiran Trading Company Ltd, or NICO[5]) [10%][6]
- 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: 16.63 bcm/y[2][6]
- 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%]; Southern Gas Corridor CJSC [21.02%]; Lukoil [19.99%]; TPAO [19%]; NOIC (National Iranian Oil Company, via its subsidiary Naftiran Trading Company Ltd, or NICO[5]) [10%][6]
- 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: Shelved (2023)
- previously 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 gas pipeline from the Shah Deniz gas field in the Azerbaijan sector of the Caspian Sea to Turkey. 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]
The initial capacity of the pipeline was 7.41 billion bcm/year.[2][13] For the second stage of the Shah Deniz development, the capacity was increased to 24.04 bcm/year by adding a looping pipeline to existing SCP in Azerbaijan and Georgia, three Compressor Stations (one in Azerbaijan, two in Georgia), six Block Valve Stations (5 in Azerbaijan, 1 in Georgia) at a cost of US$3 billion.[2][14][15] Annual transmission capacity can be increased to 34 bcm if required.[6]
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]
Expansion Projects
As a part of the Shah Deniz Full Field Development (FFD), otherwise called the Shahdeniz-2 project, BP carried out an extension (SCPx) by putting three 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][15]
The South Caucasus Pipeline Future Expansion (SCPFx) project appears to have been proposed around 2020 and was included on the 2020 PCI list.[17] However, as of early 2023 there is no evidence for further progress of the project, and it is not mentioned on the SOCAR Midstream website as in progress in any way. It is therefore presumed to be shelved.
Route
The 42-in (1,070 mm) diameter gas pipeline runs through the same corridor as the Baku-Tbilisi-Ceyhan Pipeline (oil pipeline) until Erzurum, where the Baku-Tbilisi-Ceyhan Pipeline turns south to the Mediterranean. It is 693 kilometers long, of which 443 kilometers is in Azerbaijan and 250 kilometers is in Georgia.[7][18]
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.[14]
Operatorship
The pipeline has a dual operatorship with BP as the technical operator being responsible for construction and operation of the SCP facilities and SOCAR Midstream Operations Limited, as commercial operator, is responsible for SCP's business administration.[15]
According to the Production Sharing Agreement, commercial operation of the SCP was transferred to from Statoil to SOCAR on 1 January 2015.
Articles and resources
References
- ↑ "South Caucasus pipeline | Who we are | Home". Azerbaijan. Retrieved 2022-08-12.
- ↑ 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 2.15 Southern Caucasus Pipeline, Southern Gas Corridor, archived from the original on Aug. 31, 2021.
- ↑ 3.0 3.1 3.2 "South Caucasus pipeline | Who we are | Home". Azerbaijan. Retrieved 2022-08-11.
- ↑ 4.0 4.1 4.2 "South Caucasus Pipeline (SCP)". Southern Gas Corridor. Retrieved August 31, 2023.
{{cite web}}: CS1 maint: url-status (link) - ↑ 5.0 5.1 5.2 "TRANS CASPIAN RESOURCES, INC (TCRI)". transcaspianresources.us. Retrieved 2022-08-11.
{{cite web}}: CS1 maint: url-status (link) - ↑ 6.0 6.1 6.2 6.3 6.4 6.5 "The Southern Gas Corridor". The Ministry of Energy of the Republic of Azerbaijan. May 31, 2023. Retrieved August 31, 2023.
{{cite web}}: CS1 maint: url-status (link) - ↑ 7.0 7.1 7.2 7.3 "Azerbaijan Energy Profile" (PDF). IEA. August 2023. Retrieved September 19, 2024.
{{cite web}}: CS1 maint: url-status (link) - ↑ 8.0 8.1 Khodadad, Nabil. "Financing Cross-Border Pipelines" (PDF). energycharter.org. Retrieved 2022-08-12.
{{cite web}}: CS1 maint: url-status (link) - ↑ "$ 4 bln spent on South Caucasus Pipeline Expansion project". Report News Agency. Retrieved 2022-08-12.
- ↑ Azerbaijan's Shah Deniz Field On Stream, OilVoice, Dec. 15, 2006, archived from the original on Mar. 6, 2016, accessed Aug. 31, 2021.
- ↑ BP shuts in Georgia links, Upstream Online, Aug. 12, 2008, accessed Aug. 31, 2021.
- ↑ BP turns on Georgia gas taps, Upstream Online, Aug. 14, 2008, accessed Aug. 31, 2021.
- ↑ Shah Deniz Taps Primed, Upstream Online, Sep. 14, 2006, accessed Aug. 31, 2021.
- ↑ 14.0 14.1 Vladimir Socor, SCP, TANAP, TAP: Segments of the Southern Gas Corridor to Europe, The Jamestown Foundation, Jan. 15, 2014, accessed Aug. 31, 2021.
- ↑ 15.0 15.1 15.2 "Overview". Socar Midstream. Retrieved August 31, 2023.
{{cite web}}: CS1 maint: url-status (link) - ↑ Azerbaijan Drives the Planning on Trans-Anatolia Gas Pipeline Project, The Jamestown Foundation, Sep. 11, 2012, accessed Aug. 31, 2021.
- ↑ "https://www.energy-community.org/regionalinitiatives/infrastructure/PLIMA/Gas22.html".
{{cite web}}: External link in|title= - ↑ SCP Commissioning Commences, BP, Jun. 6, 2008, archived from the original on Aug. 11, 2010, archived accessed Aug. 31, 2021.
