Bert Watson 7/31/20 Bert Watson 7/31/20

Pipeline Options to Europe

he South Caucasus Pipeline (also known as Baku–Tbilisi–Erzurum Pipeline, BTE pipeline,

Nord Stream (former names: North Transgas and North European Gas Pipeline; Russian: Северный поток, Severny potok) is a system of offshore natural gas pipelines from Russia to Germany. It includes two lines running from Vyborg to Greifswald forming original Nord Stream (Nord Stream 1), and two lines running from Ust-Luga to Greifswald termed Nord Stream 2. Nord Stream is owned and operated by Nord Stream AG, whose majority shareholder is the Russian state company Gazprom, and Nord Stream 2 is owned and will be operated by Nord Stream 2 AG, a wholly owned subsidiary of Gazprom. The first line of Nord Stream was laid by May 2011 and was inaugurated on 8 November 2011.[1][2] The second line of Nord Stream was laid in 2011–2012 and was inaugurated on 8 October 2012. At 1,222 kilometres (759 mi) in length, Nord Stream is the longest sub-sea pipeline in the world, surpassing the Langeled pipeline.[3][4] Laying Nord Stream 2 was carried out in 2018–2019, and before the imposition of U.S. sanctions which halted the work, it was expected to become operational in mid-2020.[5] Nord Stream has a total annual capacity of 55 billion m3 (1.9×1012 cu ft) of gas, and the addition of Nord Stream 2 is expected to double the capacity to a total of 110 billion m3 (3.9×1012 cu ft).[6][7][8] Both projects have been opposed by the United States as well as several Central and Eastern European countries because of concerns that it would increase Russia's influence in the region. The U.S. resistance of Nord Stream 2 is also influenced by the country's increased production of natural gas, which gives the U.S. Congress economic incentive to resist the Russian supply of gas to the EU, in favour of U.S. shale gas.[9]

TAP's shareholders, major energy companies SOCAR, Snam, BP, Fluxys, Enagás and Axpo, are experienced in delivering complex international projects.

Expandable pipeline capacity

Anticipating future needs, TAP's developers integrated flexibility into the pipeline design to accommodate future gas volumes. TAP's initial capacity of 10 billion cubic metres (bcm) of gas per year is equivalent to the energy consumption of approximately seven million households in Europe. In future, the addition of two extra compressor stations could double throughput to more than 20 bcm as additional energy supplies come on stream in the wider Caspian region.

Interconnections with other pipelines

Along its route, TAP can facilitate connections to a number of existing and proposed pipelines, ensuring that the Southern Gas Corridor opens up to many different energy markets. This will enable the delivery of Caspian gas to destinations throughout South Eastern, Central and Western Europe.

Economic impact

The first aim of the pipeline is to supply Turkey and Georgia. As a transit country, Georgia has rights to take 5% of the annual gas flow through the pipeline in lieu of a tariff and can purchase a further 0.5 billion cubic metres (18 billion cubic feet) of gas a year at a discounted price. In the longer term, it will supply Europe with Caspian natural gas through the planned Southern Gas Corridor pipelines, such as the Trans Adriatic Pipeline and Trans-Anatolian gas pipeline.

South Caucasus Pipeline expansion (SCPx)

As a part of the Shah Deniz Full Field Development (FFD), otherwise called the Shahdeniz-2 project, BP will expand the pipeline through capacity extension by putting two additional compressor stations in Georgia and Turkey. This will almost triple the current transportation capacity of the pipeline up to 20 bcm/year. This capacity increase would be able to accommodate an additional 16 bcm gas coming from the SD-2 project

Project company

The pipeline is owned by the South Caucasus Pipeline Company, a consortium led by BP and SOCAR. The shareholders of the consortium are: BP (UK) 28.83%; TPAO (Turkey) 19%; SOCAR (Azerbaijan) 16.67%; Petronas (Malaysia) 15.5%; Lukoil (Russia) 10% Naftiran Intertrade (Iran) 10%

‡ https://en.wikipedia.org/wiki/South_Caucasus_Pipeline

Bert Watson 7/31/20 Bert Watson 7/31/20

WHAT IS SOUTHERN GAS CORRIDOR?

The Southern Gas Corridor project aims to increase and diversify European energy supply by bringing gas resources from the Caspian Sea to markets in Europe.

The Southern Gas Corridor project aims to increase and diversify European energy supply by bringing gas resources from the Caspian Sea to markets in Europe. The Southern Gas Corridor comprises the following four projects: (i) operation of Shah Deniz natural gas-condensate field (“SD1” project) and its full-field development (“SD2'” project), (ii) the operation of the South Caucasus Pipeline (“SCP” project) and its expansion (“SCPX” project), (iii) the construction of the Trans-Anatolian Natural Gas Pipeline (“TANAP” project) and (iv) the construction of the Trans Adriatic Pipeline (“TAP” project) (SD2, SCPX, TANAP and TAP collectively, the “Projects”). The Projects have an estimated investment cost of approximately US$40 billion. Upon completion, the SD2 project will add a further 16 bcm of natural gas per annum to 10.9 bcma (maximum production capacity) already produced under SD1 project. Total length of the newly constructed SCPX, TANAP and TAP pipelines will be more than 3,200 kilometres.

In order to ensure the delivery of Azerbaijani gas to the European markets, on 29 October 2013 the President of the Republic of Azerbaijan signed a decree establishing a State Commission with the purpose of ensuring state control over and providing state support in regard to the effective implementation of the full-field development of Shah Deniz gas-condensate field (“SD2”), South Caucasus Pipeline Expansion (“SCPX”), implementation of Trans-Anatolian Pipeline (“TANAP”) and Trans Adriatic Pipeline (“TAP”) projects (together “Projects”).

Subsequently, the President of the Republic of Azerbaijan signed a decree dated 25 February 2014 on the establishment of “Southern Gas Corridor” Closed Joint-Stock Company (“SGC”) with the purpose of consolidating, managing and financing the State’s interests in the Projects. SGC was founded on 31 March 2014 by the State (the Ministry of Economy of Azerbaijan Republic) (51%) and SOCAR (49%).

In accordance with the aforementioned decree, all of SOCAR’s participating interests in the Projects were transferred to SGC, which undertook onward financing of these participating interests (the completion of the transfer of 10% stakes in Shah Deniz and South Caucasus Pipeline projects will take place in 2023 subject to the fulfilment of certain conditions precedent).

The organisational structure of Southern Gas Corridor CJSC

https://energyindustryreview.com/oil-gas/southern-gas-corridor-project/

Bert Watson 7/31/20 Bert Watson 7/31/20

Trans Adriatic Pipeline

Connecting with the Trans Anatolian Pipeline (TANAP) at the Greek-Turkish border, TAP will cross Northern Greece, Albania and the Adriatic Sea before

The Trans Adriatic Pipeline (TAP) will transport Caspian natural gas to Europe.

Connecting with the Trans Anatolian Pipeline (TANAP) at the Greek-Turkish border, TAP will cross Northern Greece, Albania and the Adriatic Sea before coming ashore in Southern Italy to connect to the Italian natural gas network.

The project is currently in its construction phase, which started in 2016.

Once built, TAP 878 kilometres in length, will offer a direct and cost-effective transportation route opening up the vital Southern Gas Corridor, a 3500-kilometre long gas value chain stretching from the Caspian Sea to Europe.