South Caucasus pipeline

The SCP Co. shareholders are: BP, operator (28.8 per cent), AzSCP (10.0 per cent), TPAO (19 per cent), Petronas (15.5 per cent), Lukoil (10 per cent), NICO (10 per cent) and SGC Midstream (6.7 per cent).

Read more about the pipeline exporting Azerbaijani gas to the world markets

The South Caucasus Pipeline (SCP) was built to export Shah Deniz gas from Azerbaijan to Georgia and Turkey. The pipeline starts from the Sangachal terminal near Baku. It follows the route of the Baku-Tbilisi-Ceyhan (BTC) crude oil pipeline through Azerbaijan and Georgia to Turkey, where it is linked to the Turkish gas distribution system. 

SCP was constructed jointly with BTC in order to minimise the environmental and social impact and to achieve capital and operating cost saving synergies.

South Caucasus Pipeline Company (SCPC)  has been responsible for the construction and operation of the whole pipeline. 

So SCP 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. 

The pipeline has been operational since late 2006 transporting gas to Azerbaijan and Georgia, and starting from July 2007 to Turkey from Shah Deniz Stage 1.

The length of the pipeline is 691km, with 443 km in Azerbaijan and 248 km in Georgia. The  diameter  is a 42-inch . 

In the first quarter of 2017, SCP spent about $6 million in operating expenditure and around $191 million in capital expenditure. 

SCP’s daily average throughput was about 21.4 million cubic metres of gas per day during the first three months of 2017.

SOUTH CAUCASUS PIPELINE EXPANSION

The expansion of the South Caucasus Pipeline is part of the Shah Deniz Full Field Development project. This expansion involves the laying of new pipeline across Azerbaijan and the construction of two new compressor stations in Georgia. This will triple the gas volumes exported through the pipeline to over 20 billion cubic metres per year.

At the border between Georgia and Turkey, the pipeline will link into other new pipelines to provide gas into Turkey and the European Union. 

A Final Investment Decision on the South Caucasus Pipeline Expansion (SCPX) project was taken on 17 December 2013, coincident with Shah Deniz Stage 2. 

In the first quarter of 2017, SCPX activities continued successfully along the pipeline route across Azerbaijan and Georgia. Overall, 89% of the construction and commissioning scope is already completed.

In Azerbaijan, mainline construction continues with approximately 320km of pipe welded and 263km of backfill complete. All five of the planned horizontal directional drilling activities have also been completed, the last one having been completed in April 2017.

In Georgia, mainline construction is complete with about 62km of pipe welded, coated, lowered into trenches and backfilled.

Hydro-testing of the pipeline is ongoing in both Azerbaijan and Georgia.
Construction works continue at the two compressor stations in Georgia, with 96% progress at the first and 70% at the second station achieved. Both stations are on track for 2018 start up. Metering station (Area 81) construction works are approximately 95% complete and on track for 2017 start-up.