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Two new contracts signed within Shah Deniz Stage 2

18 November 2014 15:08 (UTC +04:00)

Baku. Agshin Rafigoglu – APA-Economics. The Shah Deniz consortium is pleased to announce the recent award of a further two contracts key to the progress of the Shah Deniz Stage 2 development project.

According to BP-Azerbaijan, the two contracts have a combined value of $226 million and have been awarded to ShawCor Nederland B.V. (Bredero), part of the Bredero Shaw pipe coating division.

These contracts cover application of anti-corrosion and concrete weight coatings to the Shah Deniz 2 subsea export pipelines, and upgrades to the Caspian Pipe Coatings (CPC) plant in Baku to enable the facility to meet the project’s requirements for anti-corrosion and concrete weight coating.

All construction and coating work under the contracts will be undertaken at the CPC facility in Baku, using local resources. The contracts are expected to require a workforce of around 300 local Azerbaijani staff. This highlights the Shah Deniz consortium’s commitment to optimise the use of Azerbaijan’s local resources.

Coating will commence in January 2015, following completion of the CPC plant upgrades. To meet the Stage 2 first gas schedule, it is planned to have the first 16” line-pipe coated ready for pipe-lay in the second quarter of 2015 and the last 32” line-pipe completed in October 2015.

The Shah Deniz Stage 2 project will deliver 16 billion cubic metres per year (bcma) of gas from the giant Shah Deniz field through some 3,500 kilometres of pipeline to Georgia, Turkey, Greece, Bulgaria, Albania and Italy. First gas is targeted for 2018, with sales to Georgia and Turkey; first deliveries to Europe will follow approximately a year later.