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 three quarters of 2017, SCP spent more than $21 million in operating expenditure and $636 million in capital expenditure. 

SCP’s daily average throughput was about 20.1 million cubic metres of gas per day during the first three quarters 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. 

During the third quarter of 2017, SCPX activities continued successfully along the pipeline route across Azerbaijan and Georgia. Overall, 98 percent of the construction and commissioning scope for first gas is already completed.

In Azerbaijan, mainline construction is nearing completion with approximately 419km of pipe welded and 380km of backfill complete. All planned horizontal directional drilling activities – five in total, have also been completed. In addition, six hydrotest sections are also complete. 

In Georgia, mainline construction is complete. Mainline commissioning is approximately 90 percent done and is on track for completion in 2017.  Main construction and commissioning works have continued at both of the compressor stations and the metering station. Compressor Station 1 construction is 100 percent complete with commissioning works approximately 67 percent done. The facility is on track for start-up in  2018.   In Compressor Station 2, construction works are approximately 82 percent complete. In the metering station (Area 81,) construction works are 100 percent complete, commissioning works are approximately 87 percent done and the facility is on track to achieve the readiness for introduction of hydrocarbons milestone in 2017.