Resources: Energy, BTC Pipeline, Caspian Region, Export Credit Agencies

The route of the BTC pipeline from Armenia through Georgia to Turkey passes in or near seven existing conflict zones, including South Ossetia and Armenia. The Corner House raised this issue with the UK’s export credit agency, ECGD, the National Audit Office and the Environmental Audit Committee of the UK Parliament.

ECGD released some information related to the coating on the BTC oil pipeline in response to a Corner House information request. 

The UK Parliament's Trade and Industry Committee held an inquiry into support provided for the BTC pipeline by the UK's export credit agency, ECGD. It focused on allegations that the companies involved knew about safety problems with the anti-corrosion coating chosen to seal the pipeline's joints before it was buried, but did not disclose them to ECGD. Contrary to previous public and parliamentary assurances, ECGD officials admitted to the inquiry that the coating had not been properly tested and it was being used for the first time.

A February 2004 Sunday Times article alleged that BP knew about safety faults with its anti-corrosion sealant coating for its Caspian oil pipeline, but did not disclose them when trying to secure funding from publicly-funded export credit agencies and multilateral development banks. A UK government minister and officials from the UK's export credit agency gave public assurances that the coating had been used extensively elsewhere on similar pipelines, but subsequently-released documents indicate that it had not.