BAKU, Azerbaijan, November 4. During the third quarter of 2026, the Sangachal Terminal Electrification (STEL) project continued to make strong progress, reaching 90% overall completion, bp said in its latest report.
“The project advanced the transition from construction completion to commissioning and start-up activities in the Shah Deniz 2 area of the terminal, while construction continued in the ACG area. Outside the terminal, upgrades to AzerEnerji’s national grid infrastructure were completed,” the company said.
Reportedly, during the quarter, the project completed several major installation and testing activities, began commissioning works, and progressed power system upgrades required to support the terminal’s future electrification. The project also completed an independent internal start-up assurance review as part of the planned start-up readiness process.
“The project remains focused on the phased delivery of commissioning and energization activities while maintaining uninterrupted terminal operations. Project execution activities are expected to be completed in two stages – Stage 1 in mid-2027, and Stage 2 by the end of 2028,” reads the report.
The $230 million STEL project will enable the terminal to connect to Azerbaijan’s national grid operated by AzerEnerji, via new facilities both within and outside the terminal.
The STEL project is closely linked to the Shafag project, a 240MW AC solar plant being built in Jabrayil, via a new commercial structure called ‘virtual power transfer arrangement’. Based on this arrangement, the Shafag plant would produce power and deliver it to AzerEnerji in the Jabrayil district, while AzerEnerji would deliver an equivalent quantity of electricity to the Sangachal terminal near Baku. Together, the Shafag and STEL projects are expected to support the reduction of operational emissions by around 50% over the future life of the Sangachal terminal, based on the current outlook and plans.
The terminal currently uses seven gas turbines to generate the power it needs. Following the electrification, the turbines will be removed in phases, freeing up the fuel gas for export.
