Baku-Tblisi-Ceyhan Pipeline

ACG production is currently shipped primarily through the Western Route pipeline, completed as part of the Early Oil project, ending in Supsa, Georgia; however, the current capacity of this route is approximately 140,000 bpd. In addition, the Northern Route pipeline to Novorossiyk, Russia has a capacity of 115,000 bpd. The BTC pipeline became a necessity due to current transportation capacity constraints that would serve to transport to market ACG crude resources, which at peak may approach 1 million bpd. Early conceptual development of the project took into account the need for a dedicated export route for the ACG fields that would not require the shipment of Caspian oil through the Bosphorus Straits thereby significantly reducing environmental risk. The BTC pipeline will be constructed and operated in accordance with stringent international environmental and social standards, will be buried along its entire length and will avoid the need to resettle any home or household as it passes through Azerbaijan (442 km), Georgia (248 km) and Turkey (1,070 km). The expansion of the existing Sangachal terminal will require the resettlement of one family of seasonal herders from their winter grazing area.

The BTC project is being sponsored by a number of national and international oil companies, eight of whom have interests in the upstream ACG fields. The estimated aggregate cost of the BTC project is US$3.7 billion, the financing of which will include total debt of approximately US$2.4 billion. The Export Credit Agencies (ECAs) include USExim, JBIC, ECGD, Hermes, COFACE and SACE.