South Caucasus pipeline

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 three quarters of 2016, SCP spent about $21 million in operating expenditure and around $764 million in capital expenditure.

SCP’s daily average throughput was about 20 million cubic metres of gas per day in the three quarters of 2016

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).

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 third quarter of 2016, SCPX activities continued successfully along the pipeline route across Azerbaijan and Georgia. 

In Azerbaijan, mainline construction continued with approximately 196km of pipe welded, 177km of pipe coated and 168km of pipe lowered into trenches. Trenching, lowering, laying and backfilling activities are progressing.

In Georgia, trenching, lowering and laying activities continued during the third quarter. Mainline construction continued with nearly 59km of pipe welded and coated, and about 52km of pipe lowered into trenches. Tunnelling at the Kura East location is complete with pipe installation due to commence in the fourth quarter of this year.

Main construction works have continued at both of the Compressor Stations and the Metering Station in Georgia. Compressor Station 1 (CSG1) construction works are approximately 80% complete and on track for 2017 delivery. Compressor Station 2 (CSG2) and Metering Station (Area 81) construction works are planned to be delivered in 2018..