BAKU, Azerbaijan, September 22. The main objective of the Shah Deniz Compression project is to make low-pressure gas reserves accessible and achieve maximum gas recovery, Bakhtiyar Aslanbayli, bp's Vice President of Communications and External Relations for the Caspian Region, said at the 1st Azerbaijan International Investment Forum held in Baku, Trend reports.
"We plan to electrify the Shah Deniz field in the future. As a first step, the Shah Deniz Alfa platform has been enabled to receive electricity directly from the Bravo platform, located eight kilometers away. In addition, the newly built Shah Deniz Compression platform will operate entirely on electricity and will also serve to supply Shah Deniz Bravo with electricity. This will ultimately allow the entire Shah Deniz field operations to be switched to electricity," the vice president explained.
He also touched upon the 240 MW Shafag Solar Power Plant being built in the liberated territories.
"The advantage of the project is that a virtual energy transmission mechanism will be applied here. That is, we will produce 240 MW of solar energy in the liberated territories and transmit it to the national grid, and at the same time, we'll take the same amount of energy from the national grid and direct it to the electrification of the largest oil and gas processing facility in Azerbaijan—the Sangachal terminal," Aslanbayli said.
The company official pointed out that this is a very successful example of energy transition.
"This is because in a country with a long tradition of oil and gas, an international energy company with 30 years of experience is channeling part of its oil and gas revenues into solar energy, which is used to electrify oil and gas processing facilities. As a result, the Sangachal terminal will be able to reduce emissions from terminal operations by approximately 50 percent during its future operational period. This is an ideal example of energy transition," he clarified.
Aslanbayli also emphasized that the future of cooperation and investment relations isn't limited to the continuation of existing operations.
"At the same time, it's opening up to new horizons based on new energy sources, innovative approaches, and a different vision. All of this is built on strategic relationships formed with the country, the Government of Azerbaijan, SOCAR, and other partners. Another important factor that distinguishes Azerbaijan’s investment environment is this: for 31 years, the terms of Production Sharing Agreements (PSAs) have never been changed without mutual consent. All commitments outlined in the agreements signed in 1994 and 1996 are still being fully honored today. This creates a truly desirable environment for any investor.
It's precisely within this framework of partnership that we plan to successfully continue our activities in Azerbaijan, not only in the traditional oil and gas sector, but also in the fields of renewable energy and energy transition," he added.
The Shah Deniz (SD) Contract Area is a high-pressure gas-condensate field situated in the Azerbaijani portion of the Caspian Sea. The development of the SD Contract Area, controlled by bp Exploration (Azerbaijan) Limited on behalf of the other members of the Production Sharing Agreement (PSA) consortium, is being executed in phases and has thus far encompassed the SD Stage 1 Project (SD1). The SD2 Project signifies the second phase of development inside the SD Contract Area, with the SD2 Infrastructure Project becoming the initial substantial undertaking onshore. The objective of the SD2 Project is to enhance the extraction of gas and condensate reserves in the offshore Shah Deniz Contract Area. The SD2 Infrastructure Project includes the necessary preparations for the building of the new SD2 Project onshore facilities.
Stay up-to-date with more news on Trend News Agency's WhatsApp channel