
BP shuts down Georgia pipelines
![]() Three pipelines that run through Georgia are now out of action. |
Energy giant BP says it has shut two of three pipelines that run through Georgia as a precautionary measure.
A spokeswoman for the firm said the oil and gas pipelines, which
run from the Caspian Sea into Georgia, had not been damaged by the
recent fighting.
The oil pipeline, which BP owns as part of a consortium, can carry up to 90,000 barrels of oil per day.
Another key oil pipeline, which runs from Azerbaijan through southern Georgia into Turkey, is already shut.
The closure comes as the International Energy
Agency (IEA) warned that the conflict posed a threat to key oil and gas
pipelines that pass through Georgia.
![]() | ![]() ![]() IEA |
The IEA said that Georgia was of strategic importance to energy
markets but that so far oil prices "had not been materially affected".
BP said it had closed the Western Route Export Pipeline (WREP),
which runs from Baku on the Caspian Sea in Azerbaijan to the Georgian
Black Sea port of Supsa, this morning.
It has also stopped pumping gas into the South Caucasus
pipeline, which runs from the Caspian Sea, through Georgia, into
Turkey, although BP said gas will continue to run through the line for
another seven days.
Precarious
The larger Baku-Tbilisi-Ceyhan (BTC) oil pipeline has been
closed since early August following an explosion on the eastern Turkish
section of the line. The current conflict could also delay its
reopening, scheduled for September.
![]() Oil and gas is transported through Georgia to Europe. |
It is the world's second-largest pipeline and runs from Azerbaijan
through southern Georgia into Turkey. It can transport up to 1.2
million barrels of oil a day.
"Renewed flows through Georgia could be further delayed if the
line is damaged during the Russia-Georgia conflict," the IEA said in
its monthly report.
It added that the outage and the eruption of hostilities
highlighted the potentially precarious nature of pipeline energy
supplies in the region.
BP has a 30% stake in the BTC pipeline.
It had been hoped that transporting oil through the region would make the West less dependent on supplies from Russia.
Figures released by the IEA later in the day showed the sharpest
drop in demand for US crude oil in 26 years, sending the price of oil
down to $113 a barrel.