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Status of pipeline projects in Azerbaijan as of Dec. 2010

Oil&Gas Materials 21 December 2010 22:48 (UTC +04:00)

Azerbaijan, Baku, Dec.20 / Trend, E.Ismayilov /

Baku-Tbilisi-Ceyhan pipeline (BTC)

The BP-operated BTC pipeline is used for the transportation of the light oil produced from the Azeri-Chirag-Gunashli (ACG) fields.

The BTC pipeline pumps oil of not all the participants of the contract on the development of the Azerbaijani Azeri-Chirag-Guneshli. In particular ExxonMobil sends its supplies via other routes. Earlier Devon, which is the ACG project participant, also pumped its oil volumes via other routes, but didn't become a shareholder in the BTC. This year, the company's share was sold to other participants in the project, including BP.

The total length of BТС is 1.768km, including the 443km section running via Azerbaijan, the 249km section via Georgia and the 1.076km via Turkey. The capacity of the pipeline is more than 50mln tons of oil per day (1mln barrel per day). Due to the chemical reagents, the capacity of the pipeline will be increased up to 1.2mln barrels per day.

The shareholders of BTC are BP (30.1%), AzBTC (25%), Chevron (8.90%), StatoilHydro (8.71%), TRAO (6.53%), Eni (5%), Total (5%), Itochu (3.40%), Inpex (2.50%), ConocoPhilips (2.50%) and Hess (2.36%).


Status of project

According to the data provided by the State Statistics Committee, in Jan-Nov the transportation via Baku-Tbilisi-Ceyhan made up more than 35.3 mln tons of oil compared to 35.2 million tons in Jan-Nov 2009.

This year, the pipeline started pumping the Turkmen oil. In July (pumping started) - November 1.1 million tons of theTurkmen oil was transported.

The oil is transported under contracts signed between the State Oil Company of the Azerbaijan Republic, Dragon Oil and other oil-producing companies in Turkmenistan.SOCAR Trading buys and transports oil from producers in Turkmenistan across the Caspian Sea to the BTC entrance flange at the Sangachal Terminal in Baku. The BTC Co. then transports the oil via the BTC to SOCAR Trading at the Mediterranean port of Ceyhan, Turkey.

The volume of oil pumping, falling to the State Oil Company of Azerbaijan (SOCAR) and pumped via the pipeline, hits roughly 25.4 million tons.

From October 2008 until late 2009 the BTC transported oil from Kazakhstan's Tengiz field. In October (2008) - November (2009) the BTC pipeline transported 1.7 million tons of Tengiz oil. However, due to lack of agreement on the size of tariff pumping of the Kazakh oil from the beginning of this year was suspended.

Baku-Supsa pipeline (BS)

The total length of Baku-Supsa makes up 827km, its diameter 530mm. The capacity of the pipeline is up 6mln tons per year. The pipeline transfers Azeri Light, extracted on from the Azeri-Chirag-Guneshli offshore block headed by BP. BP is the pipeline's operator.

Status of project

According to BP, in January-November, the Baku-Supsa pipeline transported more than 3.1 mln tons of oil (about 23 million barrels). At present, daily oil pumping via the pipeline hits 10,000-12,000 tons.

In January-November SOCAR transported about 2.7 million tons of oil via the pipeline.

Baku-Novorossiysk pipeline

SOCAR's oil is mainly transported via the Baku-Novorossiysk pipeline. It is extracted in the fields by the company, as well as stuff of joint enterprises and operational companies with foreign companies extracted over the onshore fields of the country.

SOCAR is the operator of the pipeline since early 2008, which obtained operator position from the Azerbaijan International Operating Company (headed by BP). The total length of the Baku- Novorossiysk pipeline composes 1,147km. The length of the pipeline in the territory of Azerbaijan is 231km, diameter of 720 millimeters. The pumping capacity is 120,000 tons per day.

Status of project

In Jan-Nov 2010, SOCAR transported about 2.1 mln tons of oil via Baku-Novorossiysk pipeline. In 2010, SOCAR plans to transport 2.25mln tons of oil via the pipeline compared to 2.5 mln in the same period of 2009.In 2008 SOCAR transported 1.2 million tons via the pipeline.

Baku-Tbilisi-Erzrum gas pipeline (South Caucasian gas pipeline)(BTE)

The range of the Baku - Tbilisi - Erzurum (South Caucasian gas pipeline) is more than 700km. The gas produced from the Shah Deniz field in the Azerbaijani sector of the Capian Sea is transported via the pipeline. The gas is supplied Georgia and Turkey. Azerbaijan also appears as the buyer of gas

Status of project

According to the data of the State Statistical Committee of Azerbaijan, in Jan- Nov of 2010, the South Caucasian pipeline transferred about 4.6bln cu m of gas compared to 4.7 bln cu m of gas in 2009. In 2009, the Baku-Tbilisi-Erzurum gas pipeline transported 5.2 billion cubic meters of gas compared to 4.7 billion cubic meters in 2008.

At present some part of gas out of the total daily volume is supplied to Turkey, Georgia and to pumping plants of the Baku - Tbilisi - Ceyhan pipeline, other volume is transferred to Azerbaijan from the Sangachal terminal of BP company.

This year BP, technical operator of Shah Deniz has decided to build a second line of the pipeline in Azerbaijan and two compressor stations on the pipeline in Georgia. These works will be conducted to ensure the transportation of gas from the second phase of the Shah Deniz project. The total volume of transportation through the pipeline will reach to 24 billion cubic meters a year.

Azerbaijan-Georgia pipeline

SOCAR supplies its own gas to Georgia via a pipeline linking the two countries in the Gazakh district of Azerbaijan. The pipeline's capacity is more than 2.5 billion cubic meters of gas per year.

In November 2008, Azerbaijan and Georgia signed an agreement that creates possibility of revitalization of SOCAR in the Georgian gas market over the next five years, beginning from 2009. According to the memorandum, SOCAR has established a subsidiary company SOCAR Georgia Gas, which provides consumers (social group) that the Georgian government defined with gas, to implement the project.

In late December 2008, SOCAR and Georgia signed an agreement to transfer the management of 30 gas distributing farms and the distribution of gas distribution networks covering those regions of Georgia as Kakheti, Mtskheta-Mtianeti, Shida and Kvemo Kartli, Adjara, Guria, Imereti and Samegrelo. These networks are commissioned by 24 companies. In April 2009, SOCAR has received gas distribution network of the Georgian district of Marneuli mainly populated by Azerbaijanis.

Status of the project

In January-November, SOCAR exported to Georgia 300.43 million cubic meters of gas. In 2009 SOCAR exported to Georgia over one billion cubic meters of gas compared to about 789 million in 2008.

Gas supplies to Georgia were launched in April 2008.

Azerbaijan-Iran pipeline

Azerbaijan and Iran are connected with the Astara-Bind-Biand gas pipeline length 1,474.5 kilometers, including 296.5 kilometers in the territory of Azerbaijan. Its design capacity was 10 billion cubic meters a year, now it is lower. This route is a branch of the Gazakh-Astara-Iran pipeline commissioned in 1971. Three compressor stations, including in Gazi-Magomed, Aghdash and Gazakh, were built on its route. The transmission system is designed to pressure 55 atmospheres. The pipe's diameter is 1200 mm.

Status of the project

Today, the pipeline supplies about 1.2 million cubic meters of gas, which is transported to Iran through swap operations to meet the needs of the Nakhchivan Autonomous Republic of Azerbaijan.

In December 2009, SOCAR and the National Iranian Gas Export Company signed an agreement for the supply of Azerbaijani gas to the northern provinces of Iran in the winter period and a confidentiality agreement for conducting negotiations for a period of two weeks on the five-year contract (with possibility of extension) for the supply of Azerbaijani gas. Currently, the sides continue negotiations to achieve a long-term contract.

Now the infrastructure allows to deliver about 500 million cubic meters of gas per year.However, SOCAR has been working to build a new gas compressor station in Astara, which, in turn, will increase gas supplies to Iran to 3-3.5 million cubic meters per day.

Within the swap operations with Iran to provide NAR with gas in January-November SOCAR transferred over 291.6 million cubic meters of gas. In November this figure was about 18 million cubic meters.

Iran has repeatedly stated about intention to purchase from Azerbaijan about five billion cubic meters of gas per year.

Azerbaijan-Russia pipeline

The Mozdok-Kazi-Magomed Pipeline has capacity of 5 million cu m of gas per year. Until 2007, Azerbaijan imported 4.5 billion cubic meters of gas. In 2008, Azerbaijan refused to import gas and from January 2010 started export of fuel via the Mozdok-Kazi-Magomed gas pipeline.

Status of the project

In January-November, SOCAR exported to Russia more than 759.4 million cubic meters of gas compared to 698.64 million cubic meters in January-October. In November, about 60.8 million cubic meters of Azerbaijani gas was exported to Russia.

The medium-term contract (with the possibility of extension) was signed in Baku Oct. 14. It covers 2010-2014. Under the contract, the Azerbaijani side will annually supply gas amounting to no less than 500 million cubic meters to Russia. The contract did not specify a limit to the gas supply volume. SOCAR will notify the opposite side of the amount the company can deliver for the next six months.

According to the addition to the contract signed in early September 2010 in Baku, in 2011, Gazprom will receive two billion cubic meters, in 2012 - over two billion cubic meters.

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