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BP Plans to Complete Georgian Section of SGC by mid-2018

BP plans to complete the Georgian section of the Southern Gas Corridor (SGC) by mid-2018, said the company’s country manager for Georgia Chris Schlueter.

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.

Work on the pipeline has finished, with one compressor station 95 percent ready and the other compressor station 55 percent complete, Schlueter told Reuters.

Construction of the metering station is underway, he added.

“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 2 is expected to occur several years after 2020.

The Southern Gas Corridor is one of the priority energy projects for the EU. It envisages the transportation of gas from the Caspian region to the European countries through Georgia and Turkey.

At the initial stage, the gas to be produced as part of the Stage 2 of development of Azerbaijan’s Shah Deniz field is considered as the main source for the Southern Gas Corridor projects. Other sources can also connect to this project at a later stage.

As part of the Stage 2 of the Shah Deniz development, the gas will be exported to Turkey and European markets by expanding the South Caucasus Pipeline and the construction of Trans Anatolian Natural Gas Pipeline and Trans Adriatic Pipeline.