Final investment decisions signed for electrification of Shafag SPP and Sangachal terminal

As part of the Baku Energy Week, the final investment documents for the 240 MW Shafag Solar Power Plant (SPP) and Sangachal Terminal Electrification (STEL) projects were signed with the participation of Azerbaijani Energy Minister Parviz Shahbazov and BP Executive Vice President for Production and Operations Gordon Birrell.

Report informs that the final investment decision for the Shafag SPP project was approved by the shareholders of Shafag (Jabrail) Solar Limited - BP (50.01%), SOCAR Green (39.99%) and the Azerbaijan Business Development Fund (10%), while the final investment decision for the STEL project was approved by the investors of the Sangachal terminal - BP, SOCAR, TPAO, Lukoil, SGC, NICO, MOL, INPEX, ExxonMobil, ITOCHU, ONGC Videsh, Eni, MVM and TotalEnergies.

The documents envisage the connection of the Sangachal terminal to the electricity grid through new facilities to be built both within and outside the terminal, including a new 220 kV electrical substation. Using the virtual power transmission model, the electricity generated at the Shafag GES will be transmitted to Azerenergy OJSC in Jabrayil, and an equivalent amount of electricity will be transmitted by Azerenergy OJSC to the Sangachal terminal in Baku. This will allow for an approximately 50% reduction in emissions from terminal operations during the future operation of the Sangachal terminal.

The terminal currently uses 7 gas turbines for electricity generation, which will be phased out after electrification and unused fuel gas volumes will be directed for export. This project will not only support the electrification of the terminal but also increase its safety.

A number of contracts have also been signed in relation to both projects to support investment decisions.