Our country is located right next to Middle East and Caspian Region where possess majority of the world oil reserves. BTC and SCP Pipelines were founded to transport the energy sources of the region to world markets.
After determining the potential of Black Sea, the oil and natural gas that will be discovered will be transported through our country in a safe and fast manner.
In this context, TP carries out its activities in order to meet the oil and natural gas supply of our country and will continue to increase its efficiency and control in east-west energy corridor.
Baku-Tblisi-Ceyhan Main Export Oil Pipeline (BTC) Project
The oil in Caspian Region, especially ACG and other projects oil were aimed to be transported to world markets. It starts from Baku-Azerbaijan, passes Tblisi-Georgia, reaches to Ceyhan-Turkey. It has 50 million ton/year capacity. It has 1,768 km pipeline in length and possesses related pump stations, onshore and offshore terminals and facilities in all three countries.
Field purchase and construction activities started on September 2002 and completed. The first oil reached to Ceyhan on 28 May 2006 and the first tanker was loaded on 4 June 2006 carrying Azeri oil to world markets. Inauguration ceremony of BTC was held in Ceyhan, hosting Tukey’s, Azerbaijan’s and Georgia Presidents and senior official from a variety of countries. Provisional acceptance was made on 29 July 2006 and operation phase started.
TP is a partner to the project via its subsidiary TPBTC Ltd.
Transportation from the pipeline with the capacity of 1.2 million b/d continued in 2014. Project investment cost is 5.16 billion USD including engineering, construction, oil filling the pipeline and financial expenses. Most of the ACG Project oil, the whole of the Shah Deniz condensate, TengizChevroil, Turkmenistan oil and third parties’ oil are being transported via the project. 259 million barrels oil with 361 tankers were loaded in Haydar Aliyev Terminal in Ceyhan in 2014. 2.095 billion barrels of Caspian Region oil with 2,751 tankers were transported to world markets cumulatively.
From this project, TP derived 43.09 million USD profit in 2014 whereas this amount is 388.92 million USD cumulatively.
South Caucasus Natural Gas Pipeline Project (SCP)
It is in the same route with Baku-Tblisi-Ceyhan Man Export Oil Pipeline reaching to Turkey-Georgia border. It is 692 km in length. It is foreseen that capacity can be upgraded to 24 billion m3 with additional investments.
Project’s agreements were signed on 27 February 2003. Construction decision was made together with Shah Deniz Phase-1 Development Project. As the owner of the pipeline, SCPC company was founded in order to carry out construction and operation activities.
Physical construction studies initiated in October 2004 completed, pipeline got ready to operate on 26 November 2006. Parallel to the production activities of Shah Deniz, perpetual gas transporation started on 7 March 2007. Its approximate investment is 1.4 billion USD, the current capacity is 8 billion m3/year.
Basic engineering initiated in 2010 and detailed engineering initiated in 2012. In Shah Deniz Phase-2 development activities, final investment decision was nade ıb 17 December 2013 and implementation phase commenced. The first gas transportation from Phase-2 is planned to be realized on December 2018. It is planned that 6 billion m3 gas will be be sold to BOTAŞ and 10 billion m3 gas will be sold to Europe (with TANAP and TAP lines) which is going to be produced in Phase-2. For additional gas transportation, current SCP line is foreseen to be expanded. The estimated cost of this expansion is 5.295 billion USD and TP share in it is 1.01 billion USD.
An emptio venditio was signed between TOTAL and TP, to transfer the share of TOTAL (10%) to TP in both SCP and Shah Deniz Project in exchange of 1.45 billion USD (Shah Deniz for 1.325 billion USD and SCP for 125 million USD). According to the agreement, it was paid 154 million USD for TOTAL’s 10% share in SCP by TP on 29 August 2014.
9.8 billion m3 gas was transported in 2014 and 5.9 billion of it was sold to BOTAŞ.