BP Azerbaijan reports that the Sangachal Terminal Electrification (STEL) project is advancing safely and on schedule, with full electrification targeted for the end of 2028.
Three major contracts have been awarded to support the initiative:
A $43 million Engineering, Procurement, and Construction (EPC) contract awarded to AzerEnerji OJSC for a new substation, underground cables, and overhead power lines. Civil works are nearing completion, paving the way for equipment installation and cable pulling.
A $19 million construction and fabrication contract to Azfen LLC for major electrical upgrades inside the terminal, including transformers, synchronous condensers, current-limiting reactors, and a new 110 kV switchyard. Work began in August 2025 and is progressing across multiple fronts.
A £7 million engineering and procurement contract to SOCAR KBR for detailed design, equipment supply, and procurement management, including support for construction, commissioning, and operational readiness.
Matt Kirkham, BP Vice President for Projects in Azerbaijan, Georgia, and Türkiye (Middle East and Africa region), stated: “We’re pleased with the steady progress across all STEL workstreams. The teams are delivering high-quality results while maintaining a strong focus on safety. This complex, multi-year project demands tight coordination, and I’m proud of the dedication shown by everyone involved.”
Managed by BP as the terminal operator, STEL will be completed in two stages — Stage 1 in mid-2027 and Stage 2 by the end of 2028.
The project is linked to the 240 MW Shafag (Jabrayil) solar plant through a “virtual power transfer arrangement,” enabling the terminal to connect to Azerbaijan’s national grid via new infrastructure, including a 220/110 kV substation.
Together, Shafag and STEL are expected to cut the terminal’s operational emissions by approximately 50% over its remaining life. Once electrified, the seven on-site gas turbines will be phased out, freeing up fuel gas for export.
https://renewables.az/en/news/bp-sangachal-terminal-electrification-project-progressing-on-schedule