The final investment decision on the Shah Deniz Compression (SDC) project will be signed within the framework of the 30th Anniversary International Caspian Oil and Gas Exhibition and the 13th Caspian International Energy and Green Energy Exhibition being held in Baku on June 3, Gary Jones, BP's regional president for Azerbaijan, Georgia, and Türkiye, told Report.
According to Jones, the contract signed today is truly a significant event: "When I came here eight years ago, I wouldn't have thought I would sign such a document. This is fantastic and represents an important step reflecting the energy transition. With the document we signed, the electricity produced at the Shafag Solar Power Plant (SPP) located in Jabrayil will be sold to Azerenerji OJSC. In return, we will receive the same amount of electricity from Azerenerji for the purpose of decarbonizing the Sangachal terminal. This will create conditions to reduce the terminal's carbon emissions by 50%. Thus, the freed-up gas will be supplied through the Southern Gas Corridor."
He noted that BP's next step in decarbonization in Azerbaijan will be related to the Shah Deniz Bravo platform: "We have laid an electric cable between the two platforms, and this will allow energy production on just one of them to be sufficient. The next stage is the complete electrification of that platform. And tomorrow, the final investment decision on the next important project, to be implemented in the Caspian Sea, Shah Deniz Compression, will be formalized."
The Shah Deniz Compression project includes the construction of an electrically powered SDC unmanned compressor platform, the laying of electrical and fiber-optic cables, as well as intra-field subsea gas pipelines from the Alpha and Bravo platforms.
Since it is designed exclusively for compressor facilities, no drilling operations will be conducted from the platform. SDC will be equipped with four compressors, each with a capacity of 11 MW, for gas compression.
The new platform for the Shah Deniz field is designed to deliver low-pressure gas from some layers to the Sangachal terminal. Low-pressure gas produced from the Shah Deniz Alpha and Shah Deniz Bravo platforms will first be sent to the new platform for compression, and after the pressure is increased, it will enter the Sangachal terminal.
The Shah Deniz Compression platform will be located at a water depth of 85 meters, 10 km from the Shah Deniz Alpha platform and 3 km from the Shah Deniz Bravo platform.
The support block and superstructure of the SDC platform, as well as components of the subsea infrastructure, are planned to be constructed in Azerbaijan. Most of the onshore construction and commissioning activities at the construction sites are expected to be carried out between 2026 and 2028.
The first gas production from the SDA platform is scheduled for January-July 2029, and from the SDB platform in April-May 2030.
