Supplying gas to meet the needs of regional consumers
The 692km South Caucasus Pipeline has been designed to transport gas from the Shah Deniz field in the Azerbaijan sector of the Caspian Sea, through Georgia and on to the Georgia-Turkey border. At full capacity, and after additional stages of development, it is envisaged that the pipeline will export up to 25 billion cubic metres of gas a year. At the border the pipeline links up the Turkish-built extension joining SCP to the domestic supply grid at Erzurum. Construction of the SCP pipeline, built in the same corridor of land as the BTC pipeline through its passage in Georgia, was completed in 2006. Like the BTC pipeline, it is buried underground. SCP carries natural gas from the Shah Deniz field in the Caspian Sea to customers in Azerbaijan, Georgia and Turkey. Gas entered the Georgian section of the pipeline in September 2006 as part of the pipeline testing and commissioning process. A new 12km pipeline, connecting the SCP to the Georgian gas distribution system near Gardabani, was also completed in 2006. Following commissioning, first commercial gas was delivered into the Georgian market in January 2007. We continue the safe and reliable delivery of gas through SCP into Georgian and Turkish markets and the provision of fuel gas for BTC machinery. The provision of this gas, from the Shah Deniz field in the Caspian Sea, remains an important element in Georgia’s energy security.
South Caucasus Pipeline Expansion Project (SCPX)
The discovery and development of the giant Shah Deniz gas condensate field in the Caspian Sea and the South Caucasus Pipeline (SCP) enabled Azerbaijan to become a major gas exporter in 2006. Since then, over 40 billion cubic metres of Shah Deniz gas has been supplied to Azerbaijani, Georgian and Turkish consumers. The existing 42-inch diameter SCP system is currently being expanded – the SCPX project – as part of the Shah Deniz Stage 2 development to build capacity to export an additional 16 billion cubic metres per year (bcma) of sales gas to the Georgia-Turkey border. SCPX forms the first link in a chain of pipelines creating a new Southern Gas Corridor, which will bring Caspian gas to Europe for the very first time. The expanded SCP system will tie into the Trans Anatolian Pipeline (TANAP) at the Eastern Turkey border which, in turn, will connect with the Trans Adriatic Pipeline (TAP) at the Western Turkey border some 1,900 kilometres (km) away. TAP crosses Greece and Albania, from where it continues under the Adriatic Sea to Southern Italy. The total length of TAP is about 870 km.
The existing SCP commences at the Sangachal Terminal in Azerbaijan and runs underground to its endpoint at the Georgia-Turkey border. SCPX will expand the existing 7 bcma SCP system to accommodate a further 16 bcma with a new 48-inch pipeline loop, constructed parallel to the existing SCP. The SCPX project also includes construction of a number of facilities. These comprise two new compressor stations in Georgia, two intermediate pigging stations (one each in Azerbaijan and Georgia), six 48-inch block valve stations (one in Georgia and five in Azerbaijan), pressure reduction and metering stations at the international borders, and the interconnection with TANAP at the Georgia-Turkey border. The execution of the SCPX project is based on an overall philosophy of safe design and quality build.
Georgia will benefit as a recipient of Shah Deniz Stage 2 gas, but also directly from the South Caucasus pipeline expansion. The project is expected to provide $2 billion in foreign direct investment to the country. 20 percent of the capital expenditure is planned to be spent on goods and services provided by local Georgian suppliers. Around 2,000 local jobs will be created on construction projects.
Environmental and social
In assessing possible new developments we routinely carry out Environmental and Social Impacts Assessments (ESIAs) at the start of a project. ESIAs were carried out for the South Caucasus Pipeline in Azerbaijan and Georgia prior to commencement of construction. The assessments describe the impacts that the SCP project could potentially have upon the existing environmental and social conditions along the pipeline corridor in Azerbaijan and Georgia, and how these impacts will be mitigated. They have also fed into every stage of the project design process, significantly influencing how the project was developed. The ESIA assesses the impacts of all phases of the SCP project development, from the start of construction, through commissioning, operation and eventual abandonment of the facilities. The overall objective of the SCP ESIA process is to ensure that any potential adverse environmental or social impacts arising from pipeline construction and operation are identified, and where possible eliminated or minimised through early recognition of, and response to, these issues. Another important objective of the ESIA process is to provide a mechanism for public participation and information dissemination. Further information on how SCP is managing the impact of construction and operations on people and environment can be found in the Resettlement Action Plan and the Environmental and Social Action Plan. SCP is being constructed in the same corridor as the BTC pipeline. Accordingly many of the impacts identified are addressed in common documents. The Environmental and Social documentation for the SCP pipeline can be accessed in the Reports and Publications section.
Monitoring and reporting
Internal and external monitoring has been integral to SCP project activities, providing an important source of scrutiny, challenge and assurance. Internal monitoring includes monitoring by project management and country management teams, as well as contractor self verification, to ensure compliance with applicable policies and standards. In addition, a number of external parties, including national NGOs and lender auditors, monitor the project. To access the monitoring assessments carried out to date in relation to the SCP project visit the Reports and Publications section.
BP is responsible for managing and carrying out development and production activities on behalf of the various project partnerships within agreed management frameworks. Seven national and international energy companies are partners in the development of the South Caucasus Pipeline and Shah Deniz. BP is technical operator for SCP during its operational phase.
10% share AzSCP
6.7% share SGC Midstream