Capex down on South Caucasus gas pipeline
Baku, Azerbaijan, May 10
By Maksim Tsurkov – Trend:
Capital expenditure on the South Caucasus gas pipeline (Baku-Tbilisi-Erzurum) amounted to about $191 million in 1Q17, as compared to $236 million a year before, says a BP report on its activity in Azerbaijan.
Operating expenditure on the gas pipeline totaled nearly $6 million during the period that is similar to the indicator of January-March 2016.
According to the report, the South Caucasus Pipeline’s daily average throughput was about 21.4 million cubic meters of gas per day during the first three months of 2017.
In Azerbaijan, mainline construction continues with approximately 320km of pipe welded and 263km of backfill complete. All five of the planned horizontal directional drilling activities have also been completed, the last one having been completed in April 2017.
In Georgia, mainline construction is complete with about 62km of pipe welded, coated, lowered into trenches and backfilled.
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).
Follow the author on Twitter: @MaksimTsurkov