The Azerbaijan State News Agency

bp: STEL project progresses on schedule

bp: STEL project progresses on schedule

Baku, December 1, AZERTAC

bp as operator of the Sangachal terminal has announced that construction activities for the Sangachal Terminal Electrification (STEL) project are progressing safely and on schedule.

The investors in the terminal are bp, SOCAR, TPAO, LUKOIL, SGC, NICO, MOL, INPEX, ExxonMobil, ITOCHU, ONGC Videsh, Eni, MVM, and TotalEnergies.

To date, the project has awarded three major contracts to ensure the terminal is fully electrified by the end of 2028:

1. Engineering, Procurement and Construction (EPC) contract

Valued at approximately $43 million, this contract has been awarded to AzerEnerji OJSC. The scope includes three key activity areas: construction of a new substation, installation of underground cables and erection of overhead power lines. As part of this contract civil works are nearing completion across all fronts, with equipment installation and cable-pulling activities set to commence as the project transitions into its next delivery phase.

2. Construction and fabrication contract

This $19 million contract has been awarded to Azfen MMC for major electrical infrastructure works within the Sangachal terminal, including installation of transformers, synchronous condensers, current limiting reactors, and a new 110kV switchyard. As part of the contract construction activities within the Sangachal terminal commenced in August 2025 and are advancing across multiple work fronts, including foundations for key equipment installations.

3. Engineering and procurement contract

As earlier announced, this is a £7 million contract that has been awarded to SOCAR KBR to execute the Sangachal terminal engineering and procurement scope. Under this agreement, SOCAR KBR will provide detailed design, equipment supply, and procurement management services. The scope also includes support for construction, commissioning, and operations readiness planning. As part of this contract, project activities are in progress, with current efforts focused on detailed engineering and equipment expediting.

Matt Kirkham, bp vice president, projects, for the Azerbaijan, Georgia and Türkiye region, Middle East and Africa, said: “We are pleased with the progress across all STEL project activities. With work scopes advancing in line with the plan, the teams remain committed to delivering high-quality outcomes and supporting the safe and efficient development of the project. This is a complex, multi-year effort requiring close coordination across multiple contractors and disciplines, and I’m proud of the professionalism and dedication shown by everyone involved. As we move into the next phases, our focus remains on safety, high quality and strong execution that will deliver a resilient power infrastructure that will support the terminal’s long-term operational excellence.”

The STEL project is developed and managed by bp as operator of the Sangachal terminal.

The completion of the project is expected in two stages – Stage 1 in mid-2027, and Stage 2 by the end of 2028.

The project is linked to the Shafag (Jabrayil) solar project, which consists of construction of a new 240MW AC solar plant in the Jabrayil district of Azerbaijan via a new commercial structure called ‘virtual power transfer arrangement’, which will enable the terminal to connect to 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.

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.

Following the electrification of the terminal, the seven gas turbines currently used at the terminal to generate power, will be removed in phases, freeing up the fuel gas for export.

Share news on social media

Follow us on social network

Azerbaijani, Nigerian FMs hold phone talk

Turkish ministers Fidan and Guler in Riyadh

Yemeni forces recapture Red Sea port city of Mokha from Houthis

Japan plans no new oil reserve release following G7 agreement: Premier

Special educational institutions celebrate World Teachers’ Day

Azerbaijani FM, U.S. Secretary of State hold phone talk

Azerbaijani culture showcased at Vietnamese festival

President Ilham Aliyev’s social media account shared video on opening ceremony of World Judo Championships VIDEO

Power outage hits thousands of homes, businesses in London

Azerbaijan joins music festival in South Korea

President Ilham Aliyev’s social media accounts shared video on inauguration of pharmaceutical manufacturing plant VIDEO

TURKPA Secretary General meets with Speaker of Kyrgyz Parliament

EU disburses $175M to Moldova as sides reaffirm path toward bloc membership

23 Chinese students to study in Azerbaijan under Intergovernmental Scholarship Program

Türkiye pursuing determined goal of becoming strong, respected global space player: President Erdogan

Azerbaijan, Digital Cooperation Organization expand cooperation

Top stories update

Government of Pakistan launches aid program to protect working-class citizens from rising global oil prices

10th DokuBaku International documentary film festival opens in Baku

President Ilham Aliyev attended opening ceremony of World Judo Championships VIDEO

Baku hosts World Judo Championships opening ceremony

Azerbaijani citizens among crew of vessel attacked in neutral waters - Zelenskyy

Bulgaria unveils new national model for technology, knowledge transfer

Azerbaijan’s gymnast wins two golds in UK

Azerbaijan Army servicemen successfully participate in exercise in Pakistan

Azerbaijan’s Ombudsperson meets with Ukrainian counterpart

Azerbaijani, Belarusian National Olympic Committees discuss sports cooperation

“Women in the History of Azerbaijan’s Parliamentarism”: From Past to Present

Azerbaijan, Türkiye enhance cooperation in labor and social protection field

Floods kill 31 in Thailand, waters recede in Bangkok

Baku to host Azerbaijan-UK Joint Intergovernmental Commission meeting

Azerbaijan’s Ganja and Kyrgyzstan’s Osh cities enhance cooperation

Azerbaijan, Belarus discuss prospects for sports cooperation

Film on female deminers in Garabagh wins award at European festival

Aichi-Nagoya Asian Games close; Japan achieves record medal haul

Norway to temporarily ban AI glasses in some public places

120th anniversary of Latif Karimov celebrated in Vienna with special carpet exhibition by “Azerkhalcha” OJSC

Israeli researchers discover new insect species preserved in 99-million-year-old amber

Crime in Kazakhstan decreases by 15% over first nine months of 2026

ANAMA: 1,144.9 hectares cleared of mines and unexploded ordnance last week

Unveiling ceremony of Garabagh horse statue held in Astana

Azerbaijani delegation attends 77th International Astronautical Congress in Türkiye

Cleveland Clinic Abu Dhabi ranks first in UAE across five specialties in Newsweek’s World’s Best Specialised Hospitals 2027

Oman crude oil price rises by USD 1.72

Kyrgyzstan, Oman consider establishing Investment Fund

EU Reporter” publishes analytical article on President Ilham Aliyev’s speech

Chairman of Caucasus Muslims Office to visit Kazakhstan

Nikkei stock index briefly tops 70,000 for 1st time since July

Azerbaijani companies join INNOPROM. Belarus exhibition

Euronews highlights Azerbaijani judoka’s success at Judo 2026 World Championships

Selçuk Bayraktar: We are witnessing the rise of TEKNOFEST generation in Azerbaijan as well

President Ilham Aliyev received newly appointed ambassador of Malaysia to Azerbaijan VIDEO

® IE Business School turns ABB Bank’s transformation journey into a case study

® Kapital Bank holds more than 30 business meetings at Sibos 2026

21 countries adopt Antalya Declaration for peaceful use of space

President Ilham Aliyev received newly appointed ambassador of Austria to Azerbaijan VIDEO

Chinese researchers reconstruct face of 8,000-year-old man from remains

“Impact Pioneers 26 EUROPE” programme’s Swedish week concludes in Stockholm

China’s vaccine assistance strengthens Pakistan’s livestock disease-control efforts

The New Tashkent Airport will become a symbol of modern Uzbekistan

Top stories update

FIDE President arrives in Baku

Spain's PM Sanchez calls early general election

Four Azerbaijani taekwondo fighters claim medals at Albanian Open 2026

Ebola cases surge to 8,376 in DR Congo

Portugal edge Norway 2-1 to maintain perfect Nations League start

President Ilham Aliyev attended inauguration of pharmaceutical manufacturing plant in Pirallahi Industrial Park VIDEO

® PASHA Holding continues to support opportunities for farmers

Gold and silver prices rise on global markets

Oil prices fall on global markets

Azerbaijan beat Lithuania 1-0 in UEFA Nations League

Egyptian president rejects foreign interference in African affairs, urges cooperation on shared rivers

Top stories update

Azerbaijani judoka crowned world champion in Baku

Azerbaijan leads OTS countries in imports from Türkiye

Zelenskyy says Germany provides Ukraine with $1.46B support package

‘There is no military solution’ to end war, Iran tells US

President Ilham Aliyev’s social media accounts shared video highlighting his speech at 8th Congress of YAP VIDEO

Gold and silver prices decrease on global markets

Oil prices fall in global markets

Turkish President inaugurates new interchange on Azerbaijan Boulevard in Sanliurfa

People's Writer Ilyas Afandiyev's 30th death anniversary commemorated

Azerbaijan’s Parliament Speaker embarks on working visit to Tanzania

RSF attack in Sudan killed more than 25 civilians in North Kordofan, says medical group

Türkiye carrying out 'complete revolution' in defense industry, says president

Top stories update

Azerbaijani referee to officiate UEFA Nations League match

US-Ukrainian investment fund seals first critical minerals deal

Dresden hosts international scientific symposium on epic "Kitabi-Dede Gorgud"

Exhibition dedicated to Kelaghayi traditions opens in Ankara

President of Türkiye: I hope our unity, togetherness and solidarity will remain everlasting and enduring

Azerbaijani, Iranian FMs hold phone talk

European Union to Azerbaijan hosts fourth “Taste of Europe” Culinary Festival

IEA chief warns surging diesel prices will fuel global inflation

3rd International Opera Festival brings art lovers together in Azerbaijan`s Ganja

Azerbaijani trampoline gymnasts shine with six medals in international tournament

Top stories update 

Türkiye’s Foreign Ministry: We are building the Turkic Century in unity and solidarity together

President Ilham Aliyev received President of International Judo Federation VIDEO

To His Excellency Mr. Nizar Amedi, President of the Republic of Iraq