Shah Deniz Stage 2

Shah Deniz Stage 2, or Full Field Development (FFD) is a giant project that will add a further 16 billion cubic meters per year (bcma) of gas production to the approximately 9 bcma produced by Shah Deniz Stage 1.

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Shah Deniz 2 progress

Around $28 billion in capital investment will be required to produce the gas and transport it to the Georgia-Turkey border. From there, additional pipeline systems will deliver 6 bcma of gas to Turkey and a further 10 bcma of gas to markets in Europe, in a route known as the Southern Gas Corridor. Shah Deniz gas will travel 3,500 kilometres, to elevations of over 2,500 metres, and over 800 metres below the sea.  

Shah Deniz Stage 2, one of the largest gas developments in the world, will help increase European energy security by bringing Caspian gas resources to markets in Europe for the very first time. 

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The current concept for Shah Deniz Stage 2 includes:
  • two new bridge-linked offshore platforms.
  • 26 gas production wells which will be drilled with 2 semi-submersible rigs.
  • 500 km of subsea pipelines will link the wells with the onshore terminal.
  • upgrade of the offshore construction vessels
  • expansion of the Sangachal terminal to accommodate the new gas processing and compression facilities.
During the first half of 2017, implementation of the Shah Deniz Stage 2 project continued successfully. The project is now over 95% complete in terms of engineering, procurement and construction, and remains on target for first gas from Shah Deniz Stage 2 in 2018.

Project activities continue at all offshore and onshore sites and fabrication yards of the country including the Sangachal Terminal, ATA (AMEC/Tekfen/Azfen) yard near Baku, Baku Deepwater Jackets Factory (BDJF) and along the pipeline route. 

In June, a significant milestone was achieved in the project with the sail away and installation of the Quarters and Utilities (QU) platform topsides unit – the first topsides unit built for the Shah Deniz Stage 2 platforms. The official sail away ceremony was attended by H.E. President Ilham Aliyev of the Republic of Azerbaijan. Offshore, the topsides unit was successfully floated over and installed on top of the QU jacket which was already at its location in a water depth of 94 metres. The commissioning of the Production and Risers (PR) topsides unit at the ATA yard is 90% complete. The plan is to sail away this second topsides unit for offshore installation in the third quarter of 2017.

The construction and commissioning of the subsea construction vessel (SCV) “Khankendi” are progressing well at the Baku Shipyard. The vessel is currently undergoing sea trials in the Caspian Sea which is a significant milestone on SD2 project delivery.

The expansion of the Sangachal terminal – already one of the world's largest oil and gas terminals – is progressing well with the plans to be able to process the additional SD2 gas volumes.

At the peak of project activities, over 24,000 people were involved in construction works across all main contracts in Azerbaijan and over 80% of them were Azerbaijani nationals.