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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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.
In 2015, the Shah Deniz Stage 2 project continued to move ahead with a number of milestones already achieved. The project is over 66% complete in terms of engineering, procurement and construction, and remains on target for first gas from Shah Deniz Stage 2 in 2018.

Wide scale activities are currently ongoing at all offshore and onshore sites/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. In the fourth quarter, the hull strips of the Subsea Construction Vessel Khankendi completed their journey from Singapore through the Volga-Don canal and arrived safely in Baku to join the bow section, which has now been completed at the Baku Shipyard. The sections, weighing a total of 10,800 tonnes, are 140 metres long, 16 metres wide and 17 metres high. Once completed, this new vessel will be deployed to the Shah Deniz 2 area for the construction of the subsea structures. Another major milestone was the delivery of the first two subsea Christmas Trees that were delivered to Baku from Leeds, UK, following completion of their UK testing scope.

At the end of 2015, over 20,000 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.