Amoco group plans Turkmenistan-Turkey gas line

A group led by Amoco Corp. plans to develop a $2.4 billion, 750-mile pipeline project to transport natural gas from Turkmenistan to markets in Turkey and Europe. Construction time is put at 3 years. The group consists of Amoco and a new pipeline joint venture owned by affiliates of GE Capital and Bechtel Enterprises.

July 6, 1998

2 min read

A group led by Amoco Corp. plans to develop a $2.4 billion, 750-mile pipeline project to transport natural gas from Turkmenistan to markets in Turkey and Europe.

Construction time is put at 3 years.

The group consists of Amoco and a new pipeline joint venture owned by affiliates of GE Capital and Bechtel Enterprises.

Project details

The so-called TransCaspian Gas Pipeline System will involve engineering, design, procurement, and construction of a gas export pipeline from a point near Turkmenbashi in western Turkmenistan and extending across the Caspian Sea basin to landfall near Baku in Azerbaijan. From there, it will extend across Azerbaijan and Georgia to Erzurum in Turkey, where it will be linked into the main Turkish gas grid.

Initial gas supply for the line will originate in eastern Turkmenistan. Consortium officials expect, however, that capacity in the TransCaspian pipeline could also be made available to suppliers of additional gas.

Initial capacity will be about 350 bcf/year, expandable to 1.225 tcf/year for delivery to markets in Turkey and Europe.

Project status

The pipeline project was conceived initially in 1997 by Bechtel.

Working with Turkish national oil and gas pipeline company Botas, Bechtel has completed technical and economic feasibility studies for the project. A full briefing on the project for the Turkish Ministry of Energy and Natural Resources is expected to be completed within a few weeks.

"Turkish approval is essential for us to be able to move this project forward," said Edward Smith, CEO of the GE/Bechtel Enterprises JV. "We are also initiating talks with the governments in other countries along the proposed route to secure the approvals and support needed in these jurisdictions."

Smith added that other parties would probably be asked to join the consortium as the project got under way.