Shah Deniz-2 'Over 83% Done'

Work on the Shah Deniz-2 project was more than 83% complete by the end of Q3 2016, the operator BP reported for Q3 2016. It has involved over 24,000 people, of which four in every five were citizens of the country, the report says.

According to the UK major, the pipelayer Israfil Huseynov within the framework of Shah Deniz-2 has completed the construction of four underwater pipelines and is now laying the 32-inch export pipelines. This will be completed by 2017.

In addition, Azerbaijan and Georgia are “successfully” continuing work on expanding the South Caucasus Gas Pipeline.

In Azerbaijan, 196 km of pipes were welded for the new gas pipeline, 177 km of pipes encased in concrete and 168 km of pipes laid in trenches and this work is now progressing faster, BP said.

According to the company, 59 km of pipes for the new gas pipeline have been welded and encased in concrete and about 52 km of pipes have been laid in trenches in Georgia.

The first compressor station in Georgia is 80% done and will be fully completed in 2017. The construction of the second station and the metering station will be completed in 2018. Production of the first Shah Deniz-2 gas is expected in the summer of 2018.

Members of Shah Deniz are BP (operator, 28.8%), Turkish TPAO (19%), state oil company Socar (16.7%), Malaysian Petronas (15.5%), Russian Lukoil (10%) and Iranian Nico (10%).

BP Azerbaijan head, Gordon Birrell

(Credit: BP)

The shareholders of the Shah Deniz consortium signed a final investment decision on the project Stage 2 in Baku on December 17, 2013. The cost of Stage 2, the upstream element, is now estimated at $23.8bn.

Azerbaijan desk