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    [Premium] Azeri SGGC Details $9bn Spent

Summary

NGW is publishing here an update on spending to date by all parties in the entire $40bn integrated project chain from Shah Deniz-2 to its intended EU entry point.

by: Ilham Shaban, Dalga Khatinoglu

Posted in:

Natural Gas & LNG News, Europe, Premium, Corporate, Exploration & Production, Import/Export, Political, Intergovernmental agreements, Supply/Demand, Infrastructure, , Trans-Adriatic Pipeline (TAP) , Trans-Anatolian Gas Pipeline (TANAP) , News By Country, Azerbaijan, Turkey

[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.