Capital expenditures on South Caucasus Gas Pipeline increase fourfold
Baku, Azerbaijan, Feb. 20
By Maksim Tsurkov - Trend:
In 2014, the South Caucasus Pipeline (SCP) spent about $50 million in operating expenditure and $0.9 billion in capital expenditure compared to $250 million in 2013, BP's report on its activity in Azerbaijan as of 2014 says.
During 2014, SCP's daily average throughput was 18.286 million cubic metres of gas per day, the report says.
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 per cent), SOCAR (16.7 percent), Statoil (15.5 percent), Total (10 percent), Lukoil (10 percent), NICO (10 percent) and TPAO (9 percent). These percentages include the recent purchases of equity from Statoil by BP and SOCAR. Total has entered into an agreement to sell its 10% interest in Shah Deniz to TPAO.
After the transaction is over, the share of the latter in the project will be 19 percent.
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