Azernews.Az

Nazrin Abdul

Read more

bp, as operator of the Sangachal Terminal, has announced that construction activities for the Sangachal Terminal Electrification (STEL) project are progressing safely and according to plan, Azernews reports, citing the Company.

The project, which aims to fully electrify the terminal by the end of 2028, involves a consortium of investors including bp, SOCAR, TPAO, LUKOIL, SGC, NICO, MOL, INPEX, ExxonMobil, ITOCHU, ONGC Videsh, Eni, MVM, and TotalEnergies.

The project has awarded several major contracts to ensure the terminal’s electrification. AzerEnerji OJSC received an Engineering, Procurement, and Construction (EPC) contract valued at approximately $43 million, covering the construction of a new substation, installation of underground cables, and erection of overhead power lines. Civil works are nearing completion, with equipment installation and cable-pulling activities set to begin as the project transitions into its next phase.

Azfen MMC was awarded a $19 million construction and fabrication contract for major electrical infrastructure works within the terminal. This includes the installation of transformers, synchronous condensers, current-limiting reactors, and a new 110kV switchyard. Construction activities, which began in August 2025, are advancing across multiple work fronts, including foundations for key equipment installations.

SOCAR KBR received a £7 million engineering and procurement contract to execute detailed design, equipment supply, and procurement management for the terminal. The scope also includes support for construction, commissioning, and operational readiness planning. Current efforts are focused on detailed engineering and equipment expediting.

Matt Kirkham, bp Vice President for Projects in Azerbaijan, Georgia, and Türkiye, said:

"We are pleased with the progress across all STEL project activities. With work scopes advancing in line with the plan, the teams remain committed to delivering high-quality outcomes and supporting the safe and efficient development of the project. This is a complex, multi-year effort requiring close coordination across multiple contractors and disciplines, and I’m proud of the professionalism and dedication shown by everyone involved. As we move into the next phases, our focus remains on safety, high quality, and strong execution that will deliver a resilient power infrastructure supporting the terminal’s long-term operational excellence."

The STEL project represents a critical step in ensuring sustainable, reliable, and efficient energy operations at the Sangachal Terminal, reinforcing its role as a strategic energy hub in the region.