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Akbar Novruz

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The Shah Deniz consortium has officially sanctioned the Final Investment Decision (FID) for the Shah Deniz Compression (SDC) project — a major new development phase in one of the world’s largest offshore gas-condensate fields, located in the Azerbaijani sector of the Caspian Sea.

Announced by bp on behalf of the consortium, the $2.9 billion investment aims to unlock low-pressure reserves and maximize long-term output from the Shah Deniz field, which remains a cornerstone of Azerbaijan’s energy strategy and a vital supplier to European and regional markets. The project is expected to deliver approximately 50 billion cubic meters of additional gas and 25 million barrels of condensate, extending the operational life and export capacity of the field.

Unmanned compression platform to drive next phase

At the heart of the project is the planned installation of an unmanned, electrically powered compression platform (eNUI) located 3 kilometers from the existing Shah Deniz Bravo (SDB) platform in 85 meters of water. This state-of-the-art platform, fitted with four 11-megawatt compressors, will boost gas pressure from both Shah Deniz Alpha (SDA) and SDB, ensuring sustained volumes for export through the Southern Gas Corridor via the Sangachal terminal.

The project scope also includes:

• Subsea pipelines linking the new platform to SDA and SDB export lines

• A combined electrical and fiber-optic cable from Sangachal terminal

• Backup power and data lines from SDB to the new platform

• Modifications to existing Shah Deniz and Sangachal infrastructure

Construction is set to begin in late 2025, with first gas from SDA expected through the new facility by 2029 and from SDB by 2030. The project will heavily rely on local resources, creating up to 4,000 jobs during peak construction.

Rovshan Najaf, President of SOCAR, described the FID as “a new and important page in the energy history of Azerbaijan,” noting that it supports domestic economic growth, job creation, and further strengthens Azerbaijan’s position as a regional energy hub. He added that the project demonstrates the country’s ability to deploy advanced offshore technology using local capabilities in line with its sustainable energy goals.

Gary Jones, bp’s regional president, emphasized the significance of the new facility: “This compression platform marks a major step forward in offshore gas technology and operational efficiency. It will allow us to significantly extend the production profile of Shah Deniz.”

Discovered in 1999, Shah Deniz remains a flagship of Azerbaijan’s energy exports, with estimated reserves of 1 trillion cubic meters of gas and 2 billion barrels of condensate. Since the start of production in 2006, the field has become a reliable supplier to Azerbaijan, Georgia, Türkiye, and—since 2020—European markets via the Southern Gas Corridor.

By the end of 2024, Shah Deniz had delivered approximately 243 billion cubic meters of gas and 50 million tons of condensate. Annual production reached 28 bcm of gas and over 4 million tons of condensate, reinforcing its strategic role in regional energy security.

The Shah Deniz partners include bp (operator, 29.99%), LUKOIL (19.99%), TPAO (19.00%), Southern Gas Corridor (16.02%), NIKO (10.00%), and MVM (5.00%).

With the SDC project, Azerbaijan and its partners reaffirm their commitment to innova