Shah Deniz is a large gas and condensate field situated in the Caspian Sea, 70 kilometres southeast of the capital of Azerbaijan, Baku.

Shah Deniz has produced gas since the end of 2006 from Stage 1 of its development, with the gas being supplied to customers in Azerbaijan, Georgia and Turkey.

The gas is transported through the South Caucasus Pipeline (SCP). The 690 kilometre long pipeline runs from the processing plant in Sangachal to the border between Georgia and Turkey.

Stage 2 of the field’s development is currently underway. This will contribute to a significant increase in the field’s output. The peak production of Shah Deniz Stage 1 is between 8.8 and 9 billion cubic metres per year (bcma), while Stage 2 production will account for 16 bcm per year.

The Shah Deniz Stage 2 project is set to bring gas through more than 3500 kilometres of pipelines across Azerbaijan, Georgia, Turkey, Greece, Albania and via the Adriatic Sea to Italy for the first time, opening up the Southern Gas Corridor.

Gas sales agreements with Turkish and EU buyers and gas transportation agreements with SCP, TANAP and TAP have been concluded and entered into force following Final Investment Decision for Shah Deniz Stage 2 in December 2013.