Azernews.Az

By Aynur Jafarova

The Shah Deniz and South Caucasus Pipeline consortium continue awarding key contracts for the development of the Shah Deniz Stage 2 and South Caucasus Pipeline Expansion (SCPX) projects.

The $528 million contract for the construction and commissioning support of the SCPX project facilities in Georgia has been awarded to the Bechtel Enka joint venture, BP said on March 19.

The scope of work under this contract includes construction of a 16-kilometre access road, two 120-megawatt compressor stations and a pressure reduction and metering station. Completion is expected in 2018.

The contract for pipeline and facilities engineering and project management services for the SCPX project has been awarded to Chicago Bridge & Iron UK Limited (CB&I). The value of this contract is $174 million and completion expected in 2018.

The contract for the initial phase of the subsea and pipeline engineering and project management services, amounting to $57 million, has been awarded to Wood Group Kenny Limited (WGK).

The contract for engineering, procurement and construction of the offshore platform living quarters has been awarded to Apply Emtunga. The $32 million contract should be completed in 2017.

Assembly and commissioning of the living quarters will be carried out at the ATA fabrication yard in Bibi-Heybat near Baku where topsides units of the platforms will be constructed using local resources.

The $26 million contract for horizontal directional drilling and line pipe installation for five river crossings of the SCPX project has been awarded to DrillTec GmbH. Completion is expected in 2016.

The contract for shaft and tunnel construction and line pipe installation for the two river crossings of the SCPX project (one in Azerbaijan and one in Georgia) has been awarded to CSM Bessac. This $24 million contract is expected to complete in 2017.

The contracts, covering both project management services and construction, follow the final investment decisions announced on December 17, 2013.

These contract awards complement progress across the Southern Corridor projects.

Shah Deniz reserves are estimated at 1.2 trillion cubic meters of gas. The cost of the second phase of development of Shah Deniz gas condensate field is estimated at $25 billion.

Within the second phase of development it is planned to produce some 16 billion cubic meters of gas, six billion of which will be transported to Turkey and ten billion to Europe.