96.01 - Feasibility study for the oil and gas pipelines through the Caspian Sea

Within the context of the three INOGATE pillars , this project dealt with networks and in particular, development of new strategic routes. More specifically, this project was concerned with the technical and economic pre-feasibility study of a new on-shore and off-shore pipelines system in the Caspian Sea. It covered existing and potential oil and gas producing areas in Kazakhstan, Turkmenistan, Uzbekistan and Azerbaijan, and possible oil and gas transport through the Caspian Sea. The results of the study were significant in that it was the first study ever completed that proved that such a crossing through the Caspian Sea was technically, economically and environmentally feasible.

The logic of the INOGATE project was quite different, the contractor was asked to identify the solution(s) that could meet the requirements of all known and potential oil and gas development projects and minimise the cost of transport and the impact on the environment. In other words, the contractor was asked to identify one or several regional projects in which all riparian countries could participate as opposed to bilateral projects. These projects would be part of larger transport systems crossing the Caucasus towards the Black Sea and beyond.

The depressed state of the oil and gas market in the late 1990s, prior to the recent recovery of international prices has weakened the interest of the oil and gas producers of the Caspian basin in such a project. This interest could, however, be revived by recent discoveries in the Caspian Sea and the increase in international prices.