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.
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.
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.
In the first quarter of 2016, implementation of the Shah Deniz Stage 2 project continued successfully. The project is now over 70% 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 and along the pipeline route. The pipe-lay barge Israfil Huseynov has installed about 40 kilometers of the 32-inch subsea export pipeline in accordance with the plan. In the first quarter of 2016, over 22,000 people were involved in construction activities across all main contracts in Azerbaijan and over 80% of them were Azerbaijani nationals. First gas is targeted in late 2018, with supplies to Georgia and Turkey. Gas deliveries to Europe are expected just over a year after first gas.