Transportation (Midstream) is the key intermediate phase of business operations for oil and gas companies worldwide. In addition to pipelines, which are the most cost efficient transport for the export of hydrocarbons to world markets, it involves their transportation and storage to terminals, delivery of crude to refineries via pipelines, rail, sea (by tanker) or through the country’s gas distribution network. After Azerbaijan gained its independence, SOCAR built and put into operation a large number of pipelines in a short period of time implementing domestic, regional and global projects.
After the signing of the Contract of the Century, Baku-Novorossiysk, one of the first pipelines to be laid, was fully built and commissioned in 1997. The construction of the Western Export Pipeline or Baku-Supsa Pipeline, which began after the agreement signed between Azerbaijan and Georgia in 1996, was completed in 1998. The Baku-Tbilisi-Ceyhan (BTC) oil pipeline provided direct access of Azerbaijani oil to world markets. With the expansion of the South Caucasus Pipeline (SCP), built in 2007, natural gas from the Shah Deniz field was transported to the Georgian and Türkiye markets. The Trans-Anatolian Gas Pipeline (TANAP) and the Trans-Adriatic Pipeline (TAP) were built to transport Azerbaijani gas to Türkiye and European countries as part of the Shah Deniz 2 project. This means long-term energy security for Europe, diversification of alternative routes and the creation of a competitive energy market. Together, these pipelines form a 3,500 km Southern Gas Corridor connecting Europe and Asia. The Kulevi terminal, used to store oil and gas, as well as its products and ship them to world markets, has the capacity to load and unload 10 million tons of oil. The SOCAR Terminal, located in Izmir’s Aliaga district, allows direct trade between the Far East and Northern Europe. Dubendi Terminal, with an area of 106 hectares, has the capacity to receive and transport 20 million tons of products per year.