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 2017, SCP spent more than $29 million in operating expenditure and about $784 million in capital expenditure. 

SCP’s daily average throughput was about 20.5 million cubic metres of gas per day during 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. 

During 2017, SCPX activities continued successfully along the pipeline route across Azerbaijan and Georgia. Overall, 99 percent of the first gas scope is already complete.

Mainline construction has been completed in Azerbaijan and Georgia. On the Azerbaijan section of the pipeline, the focus is on back-end activities including tie-in sections and hydro-testing. Within Georgia, hydrocarbons have been safely introduced into the metering station (Area 81) on the Georgian-Turkish border, the Georgia pipeline loop and Compressor Station 1 (CSG1). Area 81 is now fully operational and is the first asset within the Southern Gas Corridor to be declared ready to operate. Focus is now on completing safe start-up of CSG1 in preparation for operation and completion of the construction and commissioning activities on the second Compressor Station (CSG2) in Georgia.