BTC Pipeline Represents Alternative Energy Source for European Union

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Researched by Industrial Info Resources (Sugar Land, Texas)--The Baku-Tbilisi-Ceyhan (BTC) pipeline has been designed to transport about 1 million barrels per day of crude oil from the Sangachal terminal near Baku, Azerbaijan, through Georgia, to a new marine terminal in the Turkish port of Ceyhan on the Mediterranean coast. Tankers will then ship the oil to international markets, providing the European Union (EU) with an alternative to Russian energy, since much of Europe's energy-related products are imported from Russia.

The 1,768-kilomter pipeline is owned and operated by a consortium of 11 companies representing eight different countries. In Azerbaijan, the pipeline is 442 kilometers long; in Georgia, it is 248 kilometers; and in Turkey, the pipeline is 1,060 kilometers. The BTC pipeline started operations in July 2006.

In January 2009, a political dispute between Russia and Ukraine resulted in an energy-supply cut-off in much of Europe. Since that incident, the EU has taken actions to stop the Russian hegemony of energy supplies. Even though the BTC pipeline supply will account for only a small percentage of the oil provided by Russia, Western Europe considers this a stable source that also allows the EU to avoid the financial and political costs caused by the Russian line.

There are significant oil and gas reserves in the Azerbaijan sector of the Caspian Sea, and the EU is taking advantage of this in order to avoid continued dependence on Russia. At this time, new options are being considered, but currently, the BTC pipeline is the EU's best alternative.

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