Capex on South Caucasus pipeline increases
Baku, Azerbaijan, Dec.1
By Maksim Tsurkov - Trend:
The capital expenditure on the South Caucasus gas pipeline (Baku-Tbilisi-Erzurum) totaled $835 million in Jan.-Sept. 2015, compared to $599 million in the same period in 2014, said the report issued by BP Azerbaijan.
The operating expenditures on the gas pipeline neared $32 million during the reporting period.
The pumping capacity of Baku-Tbilisi-Erzurum averaged at 17.8 million cubic meters of gas per day in Jan.-Sept. 2015.
Construction of a pipeline as part of the South Caucasus Pipeline Expansion Project started in Azerbaijan in late June.
The report said that to date, the length of the welded pipes is 61 kilometers. As much as 99.7 percent of the process of obtaining land plots along the pipeline has been completed.
The length of the Baku-Tbilisi-Erzurum gas pipeline exceeds 700 kilometers. The gas produced from the Shah Deniz gas and condensate field in the Azerbaijani sector of the Caspian Sea is transported via this pipeline. Gas is delivered to Georgia and Turkey. At the same time, Azerbaijan is also a gas buyer.
The contract for development of the Shah Deniz offshore field was signed on June 4, 1996. The field's reserve is estimated at 1.2 trillion cubic meters of gas.
The shareholders are: BP, operator (28.8 percent), AzSD (10 percent), SGC Upstream (6.7 percent), Petronas (15.5 percent), Lukoil (10 percent), NICO (10 percent) and TPAO (19 percent).
Edited by SI
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