The South Caucasus Pipeline shares the same corridor, as well as same social and environmental concerns with controversial BTC Pipeline
| Location |
Azerbaijan, Georgia
|
| Funding |
$70 million EBRD funded
|
| Status |
Active
|
The South Caucasus Pipeline (SCP) originates about 100 km south Baku, Azerbaijan at one of the world’s major gas and condensate fields, Shah Deniz. The pipeline goes from the origin, the Sangachal terminal, and crosses Azerbaijan and Georgia through Tbilisi and ends at the Turkish border at Erzerum. The pipeline, 692 kilometers long, uses the same corridor as the BTC (Baku-Tbilisi-Ceyhyan) Pipeline in order to minimize environmental and social impacts. It is possible that it could be connected to the Trans-Caspian Gas Pipeline to connect with Turkmen and Kazakh producers.
The South Caucasus Pipeline is a 100% subsidiary of Lukoil Overseas. Additional participants of the international consortium include BP (25.5% as project operator), Statoil (25.5%), SOCAR (10%), LUKAgip (10%), Total FinalElf (10%), NICO (10%) and TPAO (9%). Total recoverable reserves are estimated at 625 billion cubic meters of gas and more than 100 million tons of condensate. The SCP is also known as the Yuznho-Kavkaz Pipeline, BTE (Baku-Tbilisi-Erzerum), or the Shah Deniz Pipeline. The first deliveries of gas started around December 15, 2006.
The European Bank for Reconstruction and Development (EBRD) has funded the project with $70 million. According to EBRD requirements, the Operator of the SCP Project has carried out an extensive Environmental and Social Impact Assessment (ESIA).As the project follows the controversial BTC Pipeline corridor, many of the same environmental and social concerns are shared. BIC is currently monitoring this project.