Switzerland's ABB to complete electrification of Sangachal terminal in Azerbaijan by Feb 2027
BAKU. July 24 (Interfax) - ABB will complete the electrification of the Sangachal oil and gas terminal in Azerbaijan as part of the STEL project for terminal operator BP plc by February 2027, the Swiss engineering company said.
"ABB has been awarded a large order by bp, as the operator of the Sangachal terminal in Azerbaijan, to support the electrification and power grid stability of one of the world's largest oil and gas terminals," the company said in a press release.
Under the contract, "ABB will provide and integrate four synchronous condensers, built to a site-specific design, to enable decommissioning of the existing gas turbines," which will reduce emissions and increase energy efficiency, the company said.
The terminal now uses seven gas turbines, which will be gradually dismantled after electrification. The resulting unused gas will be exported.
ABB said its synchronous condensers have a minimal footprint, while ensuring efficient and reliable operation of power grids and electrical networks. The ABB Ability System 800xA Distributed Control System (DCS) will be deployed to interface with the synchronous condensers to provide plant monitoring and supervision, the company said.
Connection to the country's national grid will enable the electrification of the site, which covers more than 688 hectares.
The contract with ABB covers the complete scope of work, from initial system studies to detailed engineering and installation, and commissioning, the company said.
ABB said the project began in February 2025 and will take about 24 months to complete.
BP, the State Oil Company of Azerbaijan Republic (SOCAR) and other investors approved the Sangachal terminal electrification (STEL) project on June 3, 2025. It will enable the terminal to connect with the national grid operated by AzerEnerji, via new facilities to be built both within and outside the terminal, including a new 220/110 kV electricity substation.
The project to build the 240 MW Shafag solar farm in the Jabrayil district of Azerbaijan and the STEL project are expected to help reduce operational emissions by around 50% over the future life of the Sangachal terminal.
The $230 million STEL project is being developed and managed by BP. All the work on the project is expected to be completed by the end of 2028.
The Sangachal terminal, located 55 km south of Baku, was designed to receive, process, store and export oil and gas from all offshore fields operated by BP in the Caspian basin and it has potential for expansion. The terminal has daily capacity to process 1.2 million barrels of oil and condensate and about 81 million cubic meters of gas from the Shah Deniz field. The terminal's overall capacity to process and export gas, including associated petroleum gas from the Azeri-Chirag-Gunashli field, totals about 100 mcm per day.
