The execution of Shah Deniz Stage 2 project, one of the largest gas developments in the world is implemented by almost 82 percent, and the work is continued in accordance with the schedule, BP, which acts as an operator of the project reported.
“Work on the expansion of Sangachal terminal is moving according to plan. “Israfil Huseynov” pipe-lay barge completed the installation of the first Shah Deniz flowline from the North Flank cluster to the platform location. The barge is now installing the other flowline before it heads to the West Flank to install the two flowlines there. “Khankendi” vessel is now getting ready for commissioning and certification. Once completed, this new vessel will be deployed to the Shah Deniz 2 area for the construction of the subsea structures,” the message said.
Sangachal terminal, which receives, processes, stores and exports crude oil and gas produced from all currently operated BP assets in the Caspian basin undergoes a major expansion as part of Shah Deniz 2. The expansion will allow it to process an additional 16 billion cubic metres of gas per year, almost tripling the overall gas processing capacity and further increasing the importance of the terminal to regional oil and gas industry.
The company also reported that a number of contracts worth some $18 billion were signed within the framework of Shah Deniz 2 development and expansion of the South Caucasus Pipeline (SCP), which was built to export Shah Deniz gas from Azerbaijan to Georgia and Turkey.
Meanwhile, BP’s Vice President on Shah Deniz 2 project Ewan Drummond said that the construction of upper modules of the project with the total weight of 28,500 tons is completed by 93 percent, adding that the fact allowed to launch implementation of trials (which are completed by 40 percent) ahead of schedule.
The proven gas reserves in Azerbaijan as of early 2016 amounted to 1.1 trillion cubic meters, which accounts for 0.6 percent of global proven gas reserves, according to BP’s estimates.
The Shah Deniz field, discovered in 1999, is considered to be one of the world’s largest gas-condensate fields, with the estimated reserves standing at 1.2 tcm. The field is located in the Azerbaijan sector of the Caspian Sea, approximately 100km south of Baku and 90 km east-south east of Sangachal in water depths ranging from 50m to 500m.
The country has so far extracted some 75 bcm of gas and 19 million tons of condensate at the field, which is located on the deep water shelf of the Caspian Sea, 70 km south-east of Baku, in water depths ranging from 50 to 500 meters.
The contract on the development of the field was signed on June 4, 1996. The cost of Shah Deniz 2 development is estimated at $25 billion, while the fist volume of gas at the field is expected to be produced in 2018.