Baku: The Shah Deniz consortium today announced it has taken the final investment decision (FID) for the new Shah Deniz Compression (SDC) project, the next stage of development of the giant Shah Deniz gas field in the Azerbaijan sector of the Caspian Sea, APA-Economics reports. Shah Deniz participating interests are: bp (operator – 29.99%), LUKOIL (19.99%), TPAO (19.00%), SGC (16.02%), NICO (10.00%) and MVM (5.00%).
According to Azeri-Press News Agency, the $2.9 billion SDC project follows the previous two stages of the field’s development. It is designed to access and produce low pressure gas reserves in the field and maximize resources recovery. The project is expected to enable around 50 billion cubic metres of additional gas and approximately 25 million barrels of additional condensate production and export from the field.
The official signing of the SDC FID took place today on the sidelines of Baku Energy Week. Rovshan Najaf, President of SOCAR, stated that the Shah Deniz Compression project reflects a commitment to long-term resource development, technological advancement, and international partnership. He emphasized the project’s role in strengthening Shah Deniz’s position as a vital energy source for the region and beyond, while creating new opportunities for the local economy and workforce. The project will utilize electrically powered, unmanned compression platform technology, highlighting a modern and efficient approach to offshore development while focusing on local construction resources and expertise to support economic growth.
Gary Jones, regional president of bp, the operator of Shah Deniz, remarked that the project will enable Shah Deniz to continue as a major supplier of global energy for decades and help maximize production recovery from the field. He expressed gratitude to the Government of Azerbaijan, SOCAR, and the co-venturers in Shah Deniz for their support and cooperation.
The project involves the installation of a new compression facility-a Normally Unattended Installation (eNUI) to be installed in 85 metres water depth, approximately 3 kilometres from the existing Shah Deniz Bravo (SDB) platform. With four 11-MW compressors onboard, the SDC platform is designed to serve as a host facility for gas compression from both the Shah Deniz Alpha (SDA) and SDB platforms. Before flowing to the Sangachal terminal onshore, export gas from the platforms will be compressed at SDC.
The project also includes several associated facilities to be installed offshore in the Shah Deniz contract area, including infield subsea gas pipelines to and from the existing SDA and SDB platforms’ gas export lines, a combined power and fiber optic cable from the Sangachal terminal to the SDC platform, and a backup interconnector power and fiber optic cable from SDB to the SDC platform. Additionally, brownfield works will be undertaken at SDA, SDB, and the Sangachal terminal.
Construction activities are planned to commence in late 2025, with completion expected in 2029 to be ready to receive first gas for compression from the SDA platform in 2029 and from the SDB platform in 2030. These activities will take place in-country utilizing local resources and creating up to 4,000 jobs.