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 third quarter of 2017, implementation of the Shah Deniz Stage 2 project continued successfully. The project is now over 97 percent complete for first gas, in terms of engineering, procurement, construction and commissioning and remains on target for first gas from Shah Deniz Stage 2 in 2018.

Project activities continue at offshore and onshore sites including the Sangachal Terminal and along the pipeline route. 

On 6 September, a new flagship vessel for the Caspian - Khankendi was launched. The state-of-the-art subsea construction vessel has been specifically designed and built to install the biggest subsea production system in the Caspian Sea as part of the Shah Deniz Stage 2 project. The official inauguration of the new $378 million vessel took place in Baku in an event which was attended by H.E. President Ilham Aliyev of the Republic of Azerbaijan. The Khankendi is now deployed to the Shah Deniz field where it is expected to perform subsea installation and construction work over the next eleven years.

On 15 September, the second topsides unit built for the Shah Deniz Stage 2 project - the topsides of the Production and Risers (PR) platform sailed away for offshore installation. This followed the safe and successful sail away and offshore installation of the Quarters and Utilities (QU) platform topsides in early June. 

The PR platform topsides unit, which was completed ahead of schedule, sailed away to the Shah Deniz contract area in the Caspian Sea from the Azfen fabrication yard in Bibi-Heybat. The transportation, float-over and installation activities were carefully planned and took six days to complete. The unit now has been installed on top of the PR jacket which was already at its offshore location in a water depth of 94 metres waiting for the deck.

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 gas volumes from Shah Deniz Stage 2. 

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.