BAKU, Azerbaijan, November 4. During the third
quarter of 2026, the Sangachal Terminal Electrification (STEL)
project continued to make strong progress, reaching 90% overall
completion, bp said in its latest report.


“The project advanced the transition from construction
completion to commissioning and start-up activities in the Shah
Deniz 2 area of the terminal, while construction continued in the
ACG area. Outside the terminal, upgrades to AzerEnerji’s national
grid infrastructure were completed,” the company said.


Reportedly, during the quarter, the project completed several
major installation and testing activities, began commissioning
works, and progressed power system upgrades required to support the
terminal’s future electrification. The project also completed an
independent internal start-up assurance review as part of the
planned start-up readiness process.


“The project remains focused on the phased delivery of
commissioning and energization activities while maintaining
uninterrupted terminal operations. Project execution activities are
expected to be completed in two stages – Stage 1 in mid-2027, and
Stage 2 by the end of 2028,” reads the report.







The $230 million STEL project will enable the terminal to
connect to Azerbaijan’s national grid operated by AzerEnerji, via
new facilities both within and outside the terminal.


The STEL project is closely linked to the Shafag project, a
240MW AC solar plant being built in Jabrayil, via a new commercial
structure called ‘virtual power transfer arrangement’. Based on
this arrangement, the Shafag plant would produce power and deliver
it to AzerEnerji in the Jabrayil district, while AzerEnerji would
deliver an equivalent quantity of electricity to the Sangachal
terminal near Baku. 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.


The terminal currently uses seven gas turbines to generate the
power it needs. Following the electrification, the turbines will be
removed in phases, freeing up the fuel gas for export.