BP gets go ahead for huge Caspian gas field development
Baku, Azerbaijan – The Shah Deniz consortium has decided to commence FEED work on the estimated $25-billion Shah Deniz Stage 2 project in Azerbaijan, BP has announced.
The project will bring 16bn cubic metres of gas per year from the Caspian Sea to markets in Turkey and Europe, with first exports due around the end of 2017.
The FEED work will include refining engineering studies, drilling further wells and initiating construction contracts. The consortium will also finalise its selection of export routes across Turkey and into Europe.
Shah Deniz Stage 2 is expected to add a further 16 billion cubic meters per year (bcma) of gas production to the approximately 9 bcma from Shah Deniz Stage 1.
The new development of the Shah Deniz field, which lies some 70km offshore in the Caspian, is expected to include two new bridge-linked production platforms; 26 subsea wells to be drilled with 2 semi-submersible rigs; 500 km of subsea pipelines built at up to 550m of water depth; a 16 bcma upgrade for the South Caucasus Pipeline (SCP); and expansion of the Sangachal Terminal.
Further pipelines will be built and expanded to transport Shah Deniz gas through Turkey and Europe.
Gas sales and transit agreements were signed in October 2011 with BOTAS, the Turkish pipeline company, and the Turkish government. Since that date, agreements have been signed to allow the Trans Anatolia Pipeline to commence engineering studies for potential gas transportation across Turkey.
Three options are being considered to carry gas into Europe: the Trans Adriatic Pipeline (TAP) with a route to Italy; Nabucco West taking gas from Turkish-European border through Eastern Europe to the West and the South East Europe Pipeline (SEEP) taking gas through Hungary, Bulgaria and Romania.
The Shah Deniz consortium will make a final route selection in 2013