Capex at South Caucasus Pipeline up 45% in 2024

The total expenditure of BP and its partners for servicing the South Caucasus Pipeline (SCP) in 2024 amounted to $101 million, which is 10.3% higher than the 2023 figure, Report informs, citing BP Azerbaijan.

"In 2024, the SCPC spent around $81 million in operating expenditure and $20 million in capital expenditure in total.

The SCP has been operational since late 2006, transporting Shah Deniz gas to Azerbaijan, Georgia and Türkiye. The expanded section of the pipeline commenced commercial deliveries to Türkiye in June 2018 and to Europe in December 2020.

During the year, the daily average export throughput of the SCP was 62.8 million cubic meters of gas per day.

The SCP has been operating since late 2006, transporting Azerbaijani gas as part of Shah Deniz Stage 1 development to Georgia, and since July 2007 to Türkiye.

As part of Shah Deniz Stage 2 project, SCP's capacity was increased for additional gas supplies to Türkiye. Commercial gas supplies to Türkiye from Stage 2 began in June 2018.

The pipeline length is 691 km, with 443 km in Azerbaijan and 248 km in Georgia. The SCP, with a capacity of 29 million cubic meters of gas per day, is a component of the Southern Gas Corridor - a pipeline system for delivering Azerbaijani gas to Europe. South Caucasus Pipeline Company is responsible for operating the entire SCP pipeline.

The operator's shareholders are: BP (29.99%), South Gas Corridor CJSC (21.02%), LUKOIL (19.99%), TPAO (19%), and NICO (10%). The contract for field development was signed in 1996. The current shareholding structure in the contract is as follows: BP plc (technical operator - 29.99%), LUKOIL (19.99%), TPAO (19%), Azerbaijan's Southern Gas Corridor (16.02%), NICO (10%), Hungarian MVM - 5%.