Regional president: bp to sign final investment decision on Shah Deniz Compression project in Azerbaijan soon

bp’s Regional President for Azerbaijan, Georgia, and Türkiye Gary Jones has announced that the final investment decision (FID) for the Shah Deniz Compression (SDC) project is set to be signed during the 30th Anniversary International Caspian Oil and Gas Exhibition and 13th Caspian International Power and Green Energy Exhibition in Baku.

During a key address, Jones expressed excitement over the recent achievements and highlighted the significance of a contract signed on June 2 for the Shafag solar power plant in Azerbaijan’s Jabrayil district, Caliber.Az reports via local media. 

He referred to it as a pivotal moment for the region’s energy landscape. Jones remarked that when he first arrived eight years ago, he could never have imagined signing such a document, calling it fantastic and a crucial step in the energy transition. Under the terms of the contract, Azerenergy will purchase electricity generated by the Shafag solar plant, which is expected to contribute significantly to the country’s renewable energy goals.

In exchange, bp will receive an equal volume of electricity from Azerenergy to help decarbonize the Sangachal terminal, aiming to reduce carbon emissions by 50 per cent. Additionally, any freed-up gas will be transported through the Southern Gas Corridor, further bolstering energy security in the region. Jones also discussed bp’s continued commitment to decarbonization, citing their work on the Shah Deniz Bravo platform. 

He explained that they had laid an electric cable between the two platforms, meaning only one would need to produce energy, and that the next stage would be the complete electrification of the platform, noting the company’s focus on reducing its environmental footprint. In closing, Jones confirmed that the final investment decision for the Shah Deniz Compression project, another key development in the Caspian Sea region, will be officially formalized on June 3.

By Naila Huseynova