BP's Shah Deniz Compression project: Key details on construction, impact, and timeline

BP-Azerbaijan is set to make a final investment decision (FID) on the Shah Deniz Compression (SDC) unmanned compressor platform project by the end of 2025, according to Tamam Bayatli, head of BP-Azerbaijan's press office.

The decision will follow the completion of the Environmental and Social Impact Assessment (ESIA) report for the SDC platform, which is now open for public discussion for a 60-day period, Caliber.Az reports via local media. 

After considering feedback from the public, the report will be submitted to the Ministry of Ecology and Natural Resources for approval. 

Once approved by the government of Azerbaijan, the FID is expected to be finalized by the second half of 2025, with the cost of the project, contractors, and construction sites determined at that time.

The ESIA report provides a detailed overview of the environmental and social conditions in the region, along with forecasts on how the SDC platform will impact the environment. It outlines mitigation measures to minimize potential adverse effects on the environment and local communities. The SDC platform is designed to be largely unmanned and will operate with minimal environmental impact. It will be a simplified, electrified platform with no discharge of sanitary waste, fire water, or foam, and there will be no flaring, single-use closed drains, or overhead structure scraping. It will solely house compressor equipment and will not be used for drilling operations.

The majority of the SDC project work will be carried out offshore in the Shah Deniz contract area, with onshore activities limited to installing the onshore section of the Sangachal Terminal and constructing the necessary support block, topsides, and subsea infrastructure. The project will employ approximately 2,600 people during its construction phase, with a limited number of specialists required during the operational phase, as the platform does not require permanent maintenance personnel.

The socio-economic impact of the SDC project is expected to be positive, with job creation and opportunities for skills development. The project is also expected to provide goods and services to the local economy. Due to the platform’s design and operational features, including no drilling and minimal emissions, there will be no ongoing environmental monitoring required. However, regional environmental studies in the Shah Deniz contract area will take place every five years.

Key elements of the project include the construction of the unmanned Shah Deniz Compression platform, the installation of subsea gas pipelines for gas export/import to and from the Shah Deniz Alpha (SDA) and Shah Deniz Bravo (SDB) platforms, and the installation of electrical and fibre optic cables to supply power to the SDC and provide backup power to SDA and SDB.

The new platform will be installed 10 kilometres from the Shah Deniz Alpha platform and 3 kilometres from the Shah Deniz Bravo platform at a water depth of 85 meters. Gas from the Shah Deniz Alpha and Bravo platforms will flow to the SDC platform before being directed to the Sangachal terminal.

The first low-pressure gas from the Shah Deniz field is expected to be produced by mid-2029. The SDC project aims to access and produce low-pressure gas reserves in the Shah Deniz contract area, with the goal of maximizing the recovery of these reserves.

By Tamilla Hasanova