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Capital expenditures on South Caucasus Gas Pipeline increase

Economy Materials 14 May 2015 10:52 (UTC +04:00)

Baku, Azerbaijan, May 14

By Maksim Tsurkov - Trend:

In the first quarter of 2015, the South Caucasus Pipeline (SCP) spent about $12 million in operating expenditure and $245 million in capital expenditure compared to $137 million in the first quarter of 2014, BP's report on its activity in Azerbaijan in the first quarter of 2015.

In the first quarter of 2015, SCP's daily average throughput was 21 million cubic meters of gas per day, the report said.

Shipments of pipe sections started in 2014 and will continue throughout 2015 and into early-2016. In total, over 40,000 sections of pipe will be delivered in 19 shipments.

The length of the Baku-Tbilisi-Erzurum (South Caucasus gas pipeline) is over 700 km. Gas produced from the Shah Deniz field in the Azerbaijani sector of the Caspian Sea is transported via the pipeline. The gas is supplied to Georgia and Turkey. Azerbaijan also is a buyer of gas.

Shah Deniz reserves are estimated at 1.2 trillion cubic meters of gas. The contract to develop the offshore Shah Deniz field was signed on June 4, 1996.

The SCP Co. shareholders are: BP, operator (28.8 percent), AzSCP (10.0 percent), SGC Midstream (6.7 percent), Petronas (15.5 percent), Lukoil (10 per cent), NICO (10 percent) and TPAO (19 percent).

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