Sangachal: bp as operator of the Sangachal terminal has announced that construction activities for the Sangachal Terminal Electrification (STEL) project are progressing safely and on schedule.
According to Azerbaijan State News Agency, the investors in the terminal include bp, SOCAR, TPAO, LUKOIL, SGC, NICO, MOL, INPEX, ExxonMobil, ITOCHU, ONGC Videsh, Eni, MVM, and TotalEnergies. To date, three major contracts have been awarded to ensure the terminal is fully electrified by the end of 2028.
The first contract, valued at approximately $43 million, has been awarded to AzerEnerji OJSC for Engineering, Procurement and Construction (EPC). This contract covers the construction of a new substation, installation of underground cables, and erection of overhead power lines. Civil works are nearing completion, with equipment installation and cable-pulling activities set to commence as the project transitions into its next delivery phase.
The second contract, worth $19 million, has been awarded to Azfen MMC for major electrical infrastructure works within the Sangachal terminal. This includes the installation of transformers, synchronous condensers, current limiting reactors, and a new 110kV switchyard. Construction activities began in August 2025 and are advancing across multiple work fronts.
The third contract, valued at £7 million, has been awarded to SOCAR KBR for engineering and procurement. SOCAR KBR is tasked with providing detailed design, equipment supply, and procurement management services. Current efforts are focused on detailed engineering and equipment expediting.
Matt Kirkham, bp vice president, projects, for the Azerbaijan, Georgia and Trkiye region, Middle East and Africa, expressed satisfaction with the progress of the STEL project. The project is described as a complex, multi-year effort requiring close coordination across multiple contractors and disciplines.
The STEL project is expected to be completed in two stages, with Stage 1 by mid-2027 and Stage 2 by the end of 2028. It is linked to the Shafag (Jabrayil) solar project, which involves the construction of a new 240MW AC solar plant in the Jabrayil district of Azerbaijan. Together, these projects aim to reduce operational emissions by around 50% over the future life of the Sangachal terminal.
Upon electrification, the terminal’s seven gas turbines will be removed in phases, freeing up fuel gas for export.