Baku:Work on the Sangachal Terminal Electrification (STEL) project has reached 90% completion by the end of the third quarter this year, marking significant progress in its development. The project, which began transitioning from the main construction phase to operational testing and commissioning preparation, continues to advance in the Shah Deniz 2 area of the terminal, with ongoing construction in the ACG area.

According to Azeri-Press news agency, the modernization of AzerEnergy's state power grid infrastructure outside the terminal site has been completed. The report highlights that several key installation and testing activities were finalized during the quarter, and operational testing commenced. The focus remains on ensuring commissioning and connection to the state power grid are executed in stages, maintaining uninterrupted operations at the terminal.

The STEL project, valued at $230 million, aims to connect the terminal to the state power grid operated by AzerEnergy OJSC, with new facilities being built both inside and outside the terminal site. It is closely connected to the Shafag solar project, which plans to establish a 240 MW AC solar power plant in the Jabrayil district. Through a "virtual power transfer mechanism," the Shafag plant will supply electricity to AzerEnergy, which will then deliver an equivalent amount to the Sangachal Terminal.

Current forecasts predict that the combined efforts of the Shafag and STEL projects will result in a 50% reduction in emissions from terminal operations in the future. The terminal, which currently uses seven gas turbines for its energy needs, plans to gradually dismantle these turbines post-electrification, allowing the unused fuel gas to be redirected for export. The project is expected to conclude in two phases, with Phase 1 set for mid-2027 and Phase 2 by the end of 2028.