Why the Baku-Supsa Pipeline Is Back at the Center of the Energy Game

Why It Matters

Restoring Baku‑Supsa gives Europe a strategic, Russian‑free oil pathway, boosts Georgia’s transit revenues, and offers Kazakhstan a diversification option, strengthening regional energy security.

Key Takeaways

• BP handed pipeline operations to Azerbaijan and Georgia on June 8.
• Pipeline capacity: 7.5 million tons annually, 837 km length.
• May 2024 Baku‑Tbilisi agreement secures Georgian operational contract.
• Kazakhstan eyes Baku‑Supsa to diversify exports from Tengiz field.
• Europe’s push for non‑Russian oil makes the route strategically vital.

Pulse Analysis

Europe’s energy strategy has been reshaped by Russia’s war in Ukraine, accelerating the hunt for alternative oil supply routes that bypass Moscow. Policymakers in Brussels are prioritizing corridors that can deliver Caspian and Central Asian hydrocarbons directly to the Black Sea, reducing reliance on Russian pipelines. In this context, the South Caucasus, long a geopolitical flashpoint, is re‑emerging as a critical transit hub, with the Baku‑Supsa pipeline positioned to become a linchpin of the broader “Middle Corridor” linking the Caspian basin to European markets.

The Baku‑Supsa line, inaugurated in 1999, stretches 837 km from Azerbaijan’s Sangachal terminal to Georgia’s Supsa port and can transport up to 7.5 million tons of crude each year. After a suspension in 2022, BP’s handover of operational control to state authorities on June 8 reflects a pre‑planned contractual shift rather than an exit. A May 2024 bilateral agreement granted Georgia an operational contract for its segment, signaling both countries’ intent to reactivate the route. Meanwhile, Kazakhstan’s energy ministry has signaled interest in using Baku‑Supsa to alleviate pressure on the congested Baku‑Tbilisi‑Ceyhan pipeline, offering a complementary path for Tengiz oil.

If fully utilized, the pipeline could deliver multiple strategic benefits. Georgia would capture transit fees and reinforce its geopolitical relevance, while Azerbaijan would diversify its export infrastructure beyond the BTC line. For Europe, the route adds a non‑Russian conduit that enhances supply resilience. However, security concerns persist, given the pipeline’s proximity to disputed territories in Georgia. Overcoming these risks and coordinating shippers’ demand will be essential for turning Baku‑Supsa from an underused asset into a cornerstone of the region’s new energy map.