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 three quarters of 2016, implementation of the Shah Deniz Stage 2 project continued successfully. The project is now over 83% 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 September, a significant milestone was achieved in the project with the sail away of the jacket for one of the Shah Deniz Stage 2 platforms from the BDJF yard for offshore installation. The official sail away ceremony, which was held at BDJF, was attended by H.E. President Ilham Aliyev of the Republic of Azerbaijan. To date the transportation, launch, and positioning activities of the Production and Risers (PR) platform jacket structure have been completed safely while pile installation is still ongoing. 

The pipelay barge Israfil Huseynov has completed installation of all four North Flank and West Flank flowlines and is currently making progress on the remaining 32’’ gas export lines – this scope of work will continue through into the first quarter of 2017.

The subsea construction vessel Khankendi has continued good progress and started up its main engines in September. Once completed, this new vessel will be deployed to the Shah Deniz 2 area for the construction of the subsea structures.

At the ATA yard, construction of both Shah Deniz 2 platform topsides is well above 90% complete and commissioning is progressing. The flare tower has been safely installed on the Production and Risers platform. 

In the third quarter of 2016, over 24,000 people were involved in construction activities across all main contracts in Azerbaijan and over 80% of them were Azerbaijani nationals.