In partnership with Shah Deniz, BP has just announced the start-up of the new $28-billion project Shah Deniz 2, a ‘landmark’ new gas development in Azerbaijan, and will become the first commercial gas delivered directly to Turkey. The project is set to start on time and on-budget.
Shah Deniz 2 is set to be the first subsea development in the Caspian Sea, also forming the largest subsea infrastructure operated by BP worldwide. The project forms the beginning of the Southern Gas Corridor series of pipelines, delivering natural gas to the Caspian Sea and directly to European markets for the first time.
“Shah Deniz 2 is one of the biggest and most complex new energy projects anywhere in the world, comprising major offshore, onshore and pipeline developments. BP and our partners have safely and successfully delivered this multi-dimensional project as designed, on time and on budget,” announced Bob Dudley, BP’s Group Chief Executive yesterday.
“Together with the Southern Gas Corridor pipeline system, Shah Deniz 2 will deliver significant new energy supplies to Europe, further diversifying its sources of energy and providing new supplies of natural gas which will be essential in the energy transition,” he said. The project is a result of close co-operation with the governments of Azerbaijan, Georgia and Turkey, a relationship that has been in the works for over 25 years.
Shah Deniz 2 is expected to produce 16 billion cubic meters of gas per year (bcma) incrementally to current Shah Deniz production. Offshore, the Shah Deniz 2 project includes 26 subsea wells, 500km of subsea pipelines and flowlines and two new bridge-linked platforms, aside from this, gas will be transported onshore through an 85 km pipeline near Baku (Azerbaijan).
“Bringing this huge project online within the schedule and budget we set out at sanction 4½ years ago is further evidence of our focus on efficient and disciplined project execution. As our largest start-up for the year, Shah Deniz 2 is also a very important milestone in delivering our plans for growth, including from our pipeline of new higher-margin projects,” said Bernard Looney, BP’s Upstream Chief Executive.
“We expect to be operating in Azerbaijan for decades to come and we continue to see opportunities to work with the country to further explore and develop its significant resources.”
The development is a major milestone in the creation of the new Southern Gas Corridor which, after its completion, is said to transport Caspian gas directly into the heart of European markets.