Pipeline Options to Europe
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%