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Status of pipeline projects in Azerbaijan as of December

Oil&Gas Materials 21 December 2012 15:48 (UTC +04:00)

Azerbaijan, Baku, Dec.21 / 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.

BTC transports most of the oil produced in Azerbaijan, that is Azeri Light oil, produced at the offshore fields of Azeri-Chirag-Guneshli.

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 1.2mln barrels per day.

BTC construction cost $4 billion.

BP is the operator of the oil pipeline. In early September, the U.S. company Hess agreed to sell its share to India's ONGC (2.72 per cent) in the project for developing the ACG oil fields, as well as a 2.36 per cent stake in the BTC pipeline. The deal value is estimated at $1 billion and is expected to be completed in the first quarter of 2013.

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%)(sells a share to Indian ONGC).

Status of project

According to the State Statistics Committee, in Jan.-Nov. the transportation via Baku-Tbilisi-Ceyhan hit 30.1 mln tons of oil compared to 32.1 million tons in Jan.-Nov. 2011.
Around 2.9 million tons of Turkmen oil was transported via the BTC in January-November compared to 1.9 million tons in the same period last year. Most of the oil extracted in Azerbaijan is being exported via BTC.

Around 2.1 million tons of Turkmen oil was transported via BTC in 2011 compared to 1.3 million tons in 2010.

Turkmen oil is being transported via BTC within SOCAR Trading's contract with Dragon Oil, extracting oil in Turkmenistan. Turkmen oil transportation via BTC began in July 2010.

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-September the Baku-Supsa pipeline transported 22 million barrels of oil.

SOCAR exported 2.58 million tons from the Georgian port of Supsa in Jan.-Nov.compared to 2.49 million tons in January-November 2011.

Oil is being delivered to Supsa via the Baku-Supsa oil pipeline.

Baku-Novorossiysk pipeline

SOCAR's oil is mainly transported via the Baku-Novorossiysk pipeline. It is extracted in the onshore and offshore fields by the company at its own funds, 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, in the territory of Russia - 916 kilometers, diameter of 720 millimeters. The pumping capacity is 120,000 tons per day.

Status of project

In Jan.-Nov., 2011, SOCAR transported over 1.83 million tons of oil via Baku-Novorossiysk pipeline similar with the index of the same period of 2011.
In total, SOCAR exported 1.99 million tons of oil in 2011 compared to about 2.24 million tons in 2009.

SOCAR transports oil extracted at its own fields, as well as that of joint ventures and operating companies wokring onshore in Azerbaijan through Novorossiysk.

Baku-Tbilisi-Erzurum gas pipeline (South Caucasian gas pipeline)

The length 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 Caspian Sea is transported via the pipeline. The gas is supplied to Georgia and Turkey. Azerbaijan also appears as the buyer of gas

Status of project

According to the State Statistics Committee of Azerbaijan, in Jan- Nov 2011, the South Caucasian pipeline transferred 3.6 bln cu m of gas compared to 4.1 bln cu m of gas in Jan.-Nov. 2011.

In 2011 the gas pipeline transported 4.5 billion cubic meters of gas and 4.9 billion cubic meters of gas in 2010. 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.

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.

According to the forecasts by late 2012, SOCAR exports around 800 million cubic meters of gas to Georgia.

In January-September, SOCAR Energy Georgia, which represents SOCAR's interests in Georgia, supplied around 1.33 billion cubic meters of gas to the Georgian market compared to 1.15 billion cubic meters during the same period of last year. Around 490.59 million cubic meters of the total volume of supplied gas fell to commercial gas with the remaining 839.25 million cubic meters going to domestic users.

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 networks.
Then a list of gas distribution facilities was increased. All these facilities were earlier eliminated. Seven regional gas facilities managed by SOCAR were formed in their place.

Status of project

SOCAR will export about 700 million cubic meters of gas to Georgia by late 2012. In 2011 SOCAR exported 339.16 million cubic meters of gas to Georgia.

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 1,200 mm.

Status of 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.

Commercial supply of Azerbaijani gas is not carried out. But Iran has repeatedly stated its intention to purchase about five billion cubic meters of gas per year from Azerbaijan.

Azerbaijan-Russia gas 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 project

The medium-term contract (with the possibility of extension) was signed in Baku Oct. 14, 2009. According to the addition to the contract signed in early September 2010 in Baku, in 2011, Gazprom was to receive two billion cubic meters, in 2012 - over two billion cubic meters.

However, the Russian side could not get the planned volumes following 2011.

The additional agreement on increasing the volume of purchasing Azerbaijani gas by Russia is two-fold (from 1.5 to 3 billion cubic meters) and was signed by the parties in Sochi on January 24 this year. Azerbaijani gas supplies to Russia began in Jan. 2010.

Accordingly, SOCAR will have exported three billion cubic meters of gas to Russia by late 2012.

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