[Premium] Azeri SGGC Details $9bn Spent
Further to BP's start-up of the Shah Deniz phase 2 upstream project, detailed in our earlier reports, NGW is providing an update by the estimated Southern Gas Corridor company (SGCC) of spending to date by all parties in the entire $40bn integrated project chain, spanning SD2 and the 3,500km pipeline route (built and planned) from Azerbaijan to Italy.
SGGC is the Azerbaijan state-owned entity that has stakes in the entire 3,500km route (the banner photo shows a section of the route, courtesy of BP).
SGCC's share of that project cost to 2020 inclusive is estimated at $11.4bn, of which $9.1bn (roughly 80%) had already been invested at end-May 2018.
The table below, compiled by NGW from SGCC documents, shows that almost $31bn had been spent to end-May on the overall $40.44bn cost of the integrated gas chain.
|
SGC segments |
Capacity bn m3/yr |
Costs bn |
Spends as of May 30 (bn) |
Pipe length (km) |
|
SD2 |
16 |
$22.7 |
$17.8 |
100 (offshore) |
|
Southern Caucasus pipeline expansion (SCPX) |
23.4 |
$4.5 |
$4.2 |
489** |
|
Trans Anatolian pipeline (Tanap) |
20 |
$8 |
$5.5 |
1,850 |
|
Trans Adriatic pipeline (TAP) |
10 |
€4.5 |
€3 |
878 |
|
Total |
- |
$40.44 |
$30.99* |
3,317 |
Source: SGCC documents, seen by NGW. * some companies yet to complete their projects to receive payments, in which case the value doesn’t include all of costs. ** SCPX is connected to SCP, operational since 2007; in total, their length is 1,181 km.