Western Route Export Pipeline
The Western Route Export Pipeline (WREP) also known as the Baku-Supsa Pipeline is the first investment of International Oil Consortium in Georgia. The pipeline transports crude oil from offshore Chiragi oil field in the Caspian Sea to the Supsa terminal through Sangachal on the Georgian Black Sea coast.
The length of this pipeline is 833km. The Georgian section of the pipeline is 375 km and it is the same route as Soviet-era Samgori-Batumi oil pipeline. Azerbaijan International Oil Consortium financed full rehabilitation works of the pipeline as well as the construction of new buildings. The Supsa terminal with the capacity of one million barrels was also constructed within the framework of the pipeline construction.
BP, the largest shareholder of the consortium, operates the Georgian section of WREP.
Project partners: BP – 34,1%, Chevron – 10,3%, SOCAR – 10%, INPEX – 10%, Statoil – 8,6%, ExxonMobil – 8%, TPAO – 6,8%, Itochu – 3,9%, Amerada Hess – 2,7%.
The BTC oil pipeline is the shortest route to transport oil from the Caspian Sea to the Mediterranean.
The total length of one of the longest pipelines in the world is 1768 km; 443 km in Azerbaijan, 249 km in Georgia, and 1,076 km in Turkey.
The diameter of the pipeline ranges from 42 to 46 inches. The pipeline has eight pumping stations (two in Azerbaijan, two in Georgia and four in Turkey).
The pipeline construction costs totaled to about $4 bl.
The BTC pipeline exports oil extracted from the Azeri-Chirag-Gunshli field to Ceyhan.
The owner of the project is International Consortium BTC Co with eleven participating partners. The pipeline is operated by BP and the project was financed by International Financial Corporation and EBRD.
After putting the pipeline into operation, the Georgian state budget received $50 ml as a direct transit fee.
Consortium partners are: BP – 30,1%, AzBTC – 25%, Chevron-8,90%, Statoil – 8,71%, TPAO – 6,53%, Eni – 5%, Total – 5%, Itochu – 3,4%, INPEX – 2,5%, ConocoPhillips – 2,5%, Amerada Hess – 2,36%.
South Caucasus Pipeline
The length of the South Caucasus Pipeline is 691 with 249km in Georgia. On the border, the pipeline is tied to the branch line built by the Turkish side, which connects the SCP to the local gas supply system of Erzrum.
Construction of the SCP was completed in 2006. First gas entered the Georgian section of the pipeline at the beginning of 2007. The SCP is constructed in the same corridor as the BTC pipeline on the territory of Georgia.
The total cost of the project totaled to $1bl. The pipeline belongs to the consortium where BP, Statoil, SOCAR, LukOil, NICO, TOTAL and TPAO are partners in the project development. BP is the technical operator of the pipeline while Statoil is the commercial operator.
After completing additional stages of the pipeline development and working at full capacity, the pipeline will transport 21 bcm of natural gas.
According to the project agreement, Georgia is not only a transit country but also a natural gas consumer country.
Georgia has an option to purchase 5% of gas transported from Azerbaijan to Turkey for a favorable price. In addition, for 20 years starting from the project functioning date, Georgia will purchase additional volume of gas about half a million cubic meters, from project investors at a special price.
Within the framework of the Southern Corridor Project, negotiations for the creation of new gas transportation routes were held in 2009-2010. As a result, an agreement was reached on the implementation of the Azerbaijan-Georgia-Romania Interconnector project (AGRI), envisaging liquefied natural gas transportation to European market via the Black Sea.
On September 2011, the Presidents of Georgia, Azerbaijan, Romania and the Prime Minister of Hungary signed a project support declaration. On the same occasion Georgian Oil and Gas Corporation (GOGC), the State Oil Company of Azerbaijan Republic (SOCAR) together with Romgaz signed a Memorandum of Understanding and the Incorporation Act (SC AFRI LNG Project Company SRL) to implement the Azerbaijan-Georgia-Romania Interconnector project.
The Azerbaijan-Georgia-Romania Interconnector (AGRI) will transport Azerbaijani gas to the Georgian Black Sea coast, where liquefied natural gas will be produced, and then transported to the Romanian city of Constanta via sea tankers. Re-gasified natural gas from Constanta will be delivered to Romania, Hungary and other southeast European countries.
АGRI (Azerbaijan-Georgia-Romania Interconnector) meets EU energy diversification and alternative supply route policy. The project is a part of the South Corridor project and enjoys wide international support.