Trans-Caspian Gas Pipeline

This article is part of the Global Fossil Infrastructure Tracker, a project of Global Energy Monitor and the Center for Media and Democracy.

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Trans-Caspian Gas Pipeline (TCP) is a proposed pipeline which would transport gas from Turkmenistan to Azerbaijan across the Caspian sea via an undersea pipeline. It is also known as the South Caucasus Pipeline Future Expansion (SCPFX), due to its connection with the South Caucasus Gas Pipeline. It is similar to the proposed Trans-Caspian 2 Gas Pipeline.

Location

The pipeline would take gas from the western shore of Turkmenistan and transport gas via an undersea pipeline to the eastern coast of Azerbaijan.

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Project Details

• Operator: W-Stream Caspian Ltd
• Parent Company: Turkmengaz, Georgian Oil and Gas Corporation (GOGC)
• Current capacity:
• Proposed capacity: 16 billion cubic meters per year
• Length:
• Status: Proposed
• Start Year: 2024

History

The Trans-Caspian pipeline has been discussed since 1996, but has faced many obstacles which has made it seem far from realistic until recent years. Ever since the fall of the Soviet Union, the legal standing of Caspian Sea territory between the former Soviet states of Azerbaijan, and Turkmenistan had been in question. In addition to legal ambiguities, there has been far too many countries surrounding the Caspian Sea involved in the project negotiations making the project difficult to get off the ground. Both Russia and Iran have also been historically opposed to such a pipeline project. However, the legal issues surrounding the Caspian Sea have been slowly resolved over time and Europe's desire to build the Southern Gas Corridor have revived the potential for the development of the TCP.

In 2006, due to a dispute between Russia and Ukraine, gas deliveries from Russia ceased and Europe was faced with a short supply of gas. Interest in the project increased and slowly fizzled until the more recent Russian-Ukranian crisis sparked renewed interest in the TCP.

However, the legal issues surrounding the Caspian Sea have been slowly resolved over time and Europe's desire to build the Southern Gas Corridor may have revived the potential for the development of the TCP.

Background

The Trans-Caspian Pipeline is planned as part of the Southern Gas Corridor (SGC) and has been identified as a project of Common Interest of the EU (PCI). While the interest in the TCP project has been renewed since 2011, the political difficulties of the region may make the project non-viable.

In addition to the political difficulties surrounding the pipeline project, the Turkstream natural gas pipeline may bypass the need for the Trans-Caspian pipeline, possibly making the project irrelevant and commercially non-viable. Since the Turkstream pipeline would deliver Russian gas across under the Black Sea into Turkey and further west, the TCP might be considered unnecessary.

Proposal for two Trans-Caspian Gas Pipelines

In May 2019 a pre-FEED (front end engineering and design) study began for a plan to build two Trans-Caspian pipelines. The first pipeline would follow an expanded SGC route (South Caucasus Pipeline, Tanap and Tap) to a final destination of Italy. The Trans-Caspian 2 Gas Pipeline would follow the White Stream route from the Georgian coast, entering the EU in Romania and reaching western Europe via existing pipelines in Romania, Moldova, Ukraine, Slovakia and onwards.

Financing

The pipeline has been approved for inclusion on the European Commission's Projects of Common Interest list, meaning it will receive public funding from the EU. According to the European Commission, "TCP: Offshore pipeline in the Caspian Sea with a length of 300 km and an ultimate capacity of 32 bcm/a will branch-off at a connection with the East-West pipeline in Turkmenistan or, for the first stage, from a collection point of offshore Caspian production/treatment in Turkmenistan. It will feed into Sangachal terminal/SCP in Azerbaijan.SCPFX: Upgrade of the existing SCP pipeline system between Azerbaijan and Turkey via Georgia with throughput capacity upgrades of 5 bcm/y by 2022 (on top of the expanded capacities under SCPX project). SCPFX project currently envisages the addition of a compressor station in Azerbaijan and pipeline looping along the route of SCP." It has already been approved for €17,243,859 EUR ($19,156,892.72 USD). Although none of the countries directly involved are EU members, the gas associated with the pipeline will reach the EU via markets in Greece and Italy.