Capex up on South Caucasus gas pipeline

Oil&Gas Materials 1 March 2016 10:36 (UTC +04:00)

Baku, Azerbaijan, March 1

By Huseyn Veliyev - Trend:

The capital expenditures on the South Caucasus gas pipeline (Baku-Tbilisi-Erzurum) totaled $1.1 billion in 2015, compared to $0.9 billion in 2014, said the BP report.

The South Caucasus Pipeline spent about $47.5 million in operating expenditures in 2015.

The pipeline's daily average throughput was 18.6 million cubic metres of gas per day in 2015, according to the report.

In Azerbaijan, mainline construction continued to ramp up with approximately 71 km of pipe welded.

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 in the contract are: BP, operator (28.8 percent), AzSD (10 percent), SGC Upstream (6.7 percent), Petronas (15.5 percent), Lukoil (10 percent), NIOC (10 percent) and TPAO (19 percent).