News // Off-shore drilling
BP starts-up landmark Shah Deniz 2 development in Azerbaijan
02 July 2018 , 15:19Neftegaz.RU701
London, July 2 - Neftegaz.RU. BP and its partners in the Shah Deniz consortium today announced the start-up of the landmark Shah Deniz 2 gas development in Azerbaijan, including its 1st commercial gas delivery to Turkey.
The BP-operated $28 billion project is the 1st subsea development in the Caspian Sea and the largest subsea infrastructure operated by BP worldwide. It is also the starting point for the Southern Gas Corridor series of pipelines that will for the 1st time deliver natural gas from the Caspian Sea direct to European markets.
BP CEO Bob Dudley said: «Shah Deniz 2 is one of the biggest and most complex new energy projects anywhere in the world... The new pipeline provides a gateway for new supplies of energy into Europe. 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.”
Shah Deniz 2 is BP’s largest new upstream project in 2018, and, following Atoll in Egypt, is the 2nd of 6 project start-ups expected for the year. This string of developments will follow from 2017’s seven major project completions and is key to delivering the 900,000 barrels of oil equivalent new production that BP expects from new upstream major projects by 2021.
At plateau, Shah Deniz 2 is expected to produce 16 billion cubic meters of gas per year (bcma) incrementally to current Shah Deniz production. Together with output from the 1st phase of development, total production from the Shah Deniz field will be up to 26 bcma of gas and up to 120,000 barrels of condensate a day.
Offshore, the Shah Deniz 2 project includes 26 subsea wells, 500km of subsea pipelines and flowlines and two new bridge-linked platforms. Gas is transported onshore through a 85 km pipeline to the Sangachal terminal near Baku, which underwent a major expansion to accommodate the new increased gas output. The project also includes the new South Caucasus pipeline expansion - 428km of new pipeline in Azerbaijan and 59km in Georgia, including two new compressor stations – carrying Shah Deniz gas to Turkey.
The development is a major milestone in the creation of the new Southern Gas Corridor which, once completed, will transport Caspian gas directly into the heart of European markets for the first time. From the South Caucasus pipeline, gas is transported across Turkey through the new Trans-Anatolian Pipeline (TANAP), which was inaugurated earlier this month, and, when complete, the Trans-Adriatic Pipeline (TAP) will then supply gas as far as Greece, Albania and Italy. Commercial deliveries to Europe are expected to commence in 2020.
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