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 10 bcma produced by Shah Deniz Stage 1.
Shah Deniz 2 and SCPX 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.
2017 was a great year for the Shah Deniz 2 and South Caucasus Pipeline Expansion (SCPX) projects. Both projects achieved significant construction, commissioning and handover milestones across the gas value chain, safely executing over 45 million man-hours of work in the process. The projects are now entering the start-up phase in the run up to achieving first gas in 2018. Shah Deniz 2 first gas scope is now 99 per cent complete, in terms of engineering, procurement, construction and commissioning. 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 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. The Khankendi is now deployed to the Shah Deniz field performing subsea installation and construction work. During 2017, the construction of both Shah Deniz 2 platform topside units was completed. They safely sailed away and were installed offshore with commissioning work currently ongoing. Construction works at the Sangachal terminal expansion area are also complete. The commissioning of the new Shah Deniz 2 facilities is currently ongoing with the plans to start operations this year to be able to receive and process the additional gas volumes from Shah Deniz 2. The installation of North Flank production umbilicals has already been completed by the Khankendi. Following completion of the export lines to the Sangachal terminal, the wells, subsea infrastructure, the Shah Deniz 2 (Bravo) platform and the Sangachal terminal are now interconnected for the first time. 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.