BP Says Caspian Gas Pipeline's Georgia Section Ready by Mid-2018
TBILISI, May 1 (Reuters) - BP plans to complete by mid-2018 the Georgian section of a $40-billion strategic pipeline bringing Caspian gas from Azerbaijan into Europe, the British energy company's country manager for Georgia said.
The so-called southern gas corridor, which is meant to reduce the European Union's dependence on Russian energy, will start at Azerbaijan's Shah Deniz II gas field and cross through Georgia, Turkey, Greece, Albania and Italy. It is the largest attempt so far to bring new supply sources to Europe.
Around 10 billion cubic metres (bcm) per year of Azeri gas should reach Europe by 2020 through the Trans Adriatic Pipeline, with another 6 bcm destined for Georgia through the South Caucasus Pipeline and Turkey through the Trans-Anatolian Pipeline.
"All of the project's components are ... on schedule as far as their intended delivery day for when commercial operations are due to begin in the middle to the later part of the next year," Chris Schlueter told Reuters, referring to the Georgian section.
The Georgian part of the project includes the construction of two compressor stations, a 65-km pipeline and a metering station near the Turkish border.
Schlueter said work on the pipeline had finished, with one compressor station 95 percent ready and the other compressor station 55 percent complete. Construction of the metering station was under way, he said, without giving specifics.
"Later this year we'll start to introduce the gas to the pipeline in order to get it ready for operations," he said.
Schlueter said the project's capital expenditure in 2016 was $550 million. In the first quarter of this year the figure was around $100 million, slightly less than in the same quarter of 2016.
"Peak spending was last year and we will start to slow down (in terms of investment) this year," he said.
Schlueter said peak production from the Shah Deniz II field was expected to occur several years after 2020. (Editing by Dale Hudson)
WHAT DO YOU THINK?
Generated by readers, the comments included herein do not reflect the views and opinions of Rigzone. All comments are subject to editorial review. Off-topic, inappropriate or insulting comments will be removed.
- Weatherford CEO's Rebound Plan Relies On Getting Smaller
- Iran Says Oil Market Is Too Tight For US Zero Exports Target
- China's Squeezed 'Teapots' Eye Petchem Path To Riches
- Baker Hughes: US Drillers Add Oil Rigs For Second Week In Three
- Venezuela Hands China More Oil Presence, But No Mention Of New Funds
- Norway Regulator Blasts Proposal to Halt New Oil and Gas Permits
- Chinese Mega Company Makes Major Oilfield Discovery
- EIA Drops 2024 Henry Hub Gas Price Forecast
- EIA and Standard Chartered Offer Up Latest Oil Price Predictions
- Red Sea Region Sees Another Watershed Incident
- Chevron Oil Project in Kazakhstan to Cost $48.5B
- OPEC Voices Encouragement after IEA Affirms Support for Oil Security
- Biden Govt Bares Strategy for Freight Charging, Hydrogen Fueling Infra
- Rystad Looks at the Buzz Around White Hydrogen
- Ukraine Hits Third Russian Refinery In Escalating Drone Strikes
- VIDEO: Missile Attack Kills Crew Transiting Gulf of Aden
- Norway Regulator Blasts Proposal to Halt New Oil and Gas Permits
- Chinese Mega Company Makes Major Oilfield Discovery
- What Is the Biggest Risk to Offshore Oil and Gas Personnel in 2024?
- Is Peak Oil Demand Close?
- Vessel Sinks in Red Sea After Missile Strike
- JP Morgan, Standard Chartered Reveal Latest Oil Price Forecasts
- Exxon Rights in Stabroek Do Not Apply to Hess Merger with Chevron: Hess
- Rystad Forecasts Net Production of Top Permian Producers in 2024
- Analysts Reveal Latest Oil Price Outlook Following OPEC+ Cut Extension