Socar SGC Investment All but Done

The Azerbaijan state-owned Southern Gas Corridor Company (SGCC) has spent $9.7bn of the total $10.1bn investment that is its share in the giant project as of April 30, the company told NGW.

The needed investment volume is far behalf previously projection in mid-2018, which put the figure at $11.5bn.

SGCC’s investments:

Source: SGCC

In total the partners have paid in $33.3bn (see detailed table below), or 86.4% of the total $38.52bn. The figure had previously been put at $40.42bn but costs have since fallen. Shah Deniz stage 2 and the Southern Caucasus pipeline expansion (SCPX), which crosses Georgia, is already complete.

Operator BP and partners announced June 30 the start-up of Shah Deniz 2 in the Azerbaijan part of the Caspian Sea, including its first commercial gas delivery via Trans Anatolian pipeline (Tanap) to Turkey. The first stage of the 2,000-km SGC, from the Caspian shores in the east to the northwest Turkish city of Eskiseher, started flows May 29 in Baku, while an opening ceremony for Tanap was also held at its Eskisehir offtake point June 12.

Testing the Tanap phase 2, from Eskisehir to Greece border started in April and projected to complete June 1. As of April 30, about 99.6% of Tanap and 87.5% of the TransAdriatic pipeline (TAP) was completed, says SGCC.  

The project is aimed to export 16bn m³/yr gas to Turkey – of which 10bn m³/yr to the EU – of Shah Deniz stage 2 gas (SD2) by 2H2020 initially. The pipe is expected to reach its final 31bn m³/yr capacity in mid-2020s., although the economics will improve when its capacity is doubled.

Azerbaijan has 16.7% share in SD2 and SCPX, 58% in Tanap as well as 20% stake in TAP. 

Breakdown of spending as of Aprill 30 (bn m³/yr; $bn; km):

Source: SGCC