Azerbaijan: Gas Development BP Commences Work at 28 Billion Dollar Shah Deniz 2 Gas Project
The timely project will act as a platform for new gas supplies to be sent directly into Europe. The Shah Deniz 2 gas development project is BP’s largest new upstream project in 2018.
Azerbaijan – BP and its partners in the Shah Deniz consortium have recently announced the start-up of the landmark Shah Deniz 2 gas development in Azerbaijan, including its first commercial gas delivery to Turkey. The BP-operated 28 billion dollar project is the first subsea development in the Caspian Sea and the largest subsea infrastructure operated by BP worldwide. It is also the starting point for the Southern Gas Corridor series of pipelines that will for the first time deliver natural gas from the Caspian Sea direct to European markets.
The Shah Deniz 2 is one of the biggest and most complex new energy projects in the world that comprises major offshore, onshore and pipeline developments. The project is BP’s largest new upstream project in 2018, and, following Atoll in Egypt, is the second of the six project start-ups expected for the year. This string of developments will follow from 2017’s seven major project completions and is key to delivering the 900,000 barrels of oil equivalent new production that BP expects from new upstream major projects by 2021.
At plateau, the project is expected to produce 16 billion cubic meters of gas per year (bcma) incrementally to current Shah Deniz production. Together with output from the first phase of development, total production from the Shah Deniz field will be up to 26 bcma of gas and up to 12,000 barrels of condensate a day.
Offshore, the Shah Deniz 2 project includes 26 subsea wells, 500 km of subsea pipelines and flowlines and two new bridge-linked platforms. Gas is transported onshore through a 85 km pipeline to the Sangachal terminal near Baku, which underwent a major expansion to accommodate the new increased gas output. The project also includes the new South Caucasus pipeline expansion – 428 km of new pipeline in Azerbaijan and 59 km in Georgia, including two new compressor stations – carrying Shah Deniz gas to Turkey.
The development is a major milestone in the creation of the new Southern Gas Corridor which, once completed, will transport Caspian gas directly into the heart of European markets for the first time. From the South Caucasus pipeline, gas is transported across Turkey through the new Trans-Anatolian Pipeline (Tanap), which was inaugurated earlier, and, when complete, the Trans-Adriatic Pipeline (Tap) will then supply gas as far as Greece, Albania and Italy. Commercial deliveries to Europe are expected to commence in 2020.