Georgia: BP reopens Georgia gas pipeline

Publisher Name: 
BBC News

BP has said it has resumed pumping gas through a
pipeline that runs through Georgia after an EU-brokered truce between
Russian and Georgian troops.

But a spokeswoman for the firm said a key oil pipeline that runs
through the country remains shut as BP assesses the security risks to
the surrounding area.

The oil pipeline can carry up to 90,000 barrels a day.

Disruptions to exports from the region have supported the oil market, though prices fell on Thursday.

US sweet, light crude dropped $1.24 to $114.76,
while London Brent crude fell 83 cents to trade at $112.64. The falls
erased gains of more than $1.40 for both measures.

It had been hoped that transporting oil through Georgia would make the West less dependent on supplies from Russia.

But the outbreak of violence showed the precarious nature of the
country as an energy transit route, the International Energy Agency
(IEA) said in its monthly report released earlier this week.

Security risk

BP said it had resumed pumping gas through the South Caucasus
pipeline - which runs from the Caspian Sea, through Georgia, into
Turkey - earlier on Thursday.

It was shut on Tuesday amid the military conflict between
Russia and Georgia over the secessionist territories of Abkhazia and
South Ossetia.

The Western Route Export Pipeline (WREP), which runs from Baku
on the Caspian Sea in Azerbaijan to the Georgian Black Sea port of
Supsa was also closed earlier this week and remains out of action.

Another BP pipeline that runs through Georgia - the
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 delay its reopening, scheduled for September, according to the IEA.

The world's second-largest pipeline, of which BP has a 30%
stake, runs from Azerbaijan through southern Georgia into Turkey. It
can transport up to 1.2 million barrels of oil a day.

AMP Section Name:Natural Resources