Azerbaijan : Shah Deniz Gas Field Expansion Project
The proposed Shah Deniz Gas Field Expansion Project will support the government's ongoing investment in the full field development of the Shah Deniz Stage II gas field expansion. The project aims to improve Azerbaijan's fiscal position by increasing revenues through the (i) export of natural gas from the expanded Shah Deniz natural gas production and processing facility, and (ii) creation of additional domestic employment.
|Project Name||Shah Deniz Gas Field Expansion Project|
|Country / Economy||Azerbaijan
|Project Type / Modality of Assistance||Loan
Private Sector Loan
|Source of Funding / Amount||
|Strategic Agendas||Environmentally sustainable growth
Inclusive economic growth
|Drivers of Change||Partnerships
Private sector development
|Sector / Subsector||
Energy / Oil and gas transmission and distribution
|Gender||No gender elements|
|Description||The proposed Shah Deniz Gas Field Expansion Project will support the government's ongoing investment in the full field development of the Shah Deniz Stage II gas field expansion. The project aims to improve Azerbaijan's fiscal position by increasing revenues through the (i) export of natural gas from the expanded Shah Deniz natural gas production and processing facility, and (ii) creation of additional domestic employment.|
|Project Rationale and Linkage to Country/Regional Strategy||ADB provides a partial credit guarantee (PCG) to support commercial bank financing for the government''s 16.67% share of the development costs of the project.|
Sustained revenues from oil and gas exports that will facilitate diversification of the country's economy
|Description of Outcome||
Increased production and exports of gas from the Shah Deniz gas field
|Progress Toward Outcome|
|Description of Project Outputs||
Shah Deniz-II natural gas production and processing facility under construction.
Greater efficiency in gas sector
Jobs created during construction and operations
|Status of Implementation Progress (Outputs, Activities, and Issues)|
|Summary of Environmental and Social Aspects|
|Stakeholder Communication, Participation, and Consultation|
|During Project Design|
|During Project Implementation|
|Responsible ADB Officer||Pladet, Roland C.J.|
|Responsible ADB Department||Central and West Asia Department|
|Responsible ADB Division||Energy Division, CWRD|
|Approval||07 Dec 2016|
|Last Review Mission||-|
|Last PDS Update||24 Sep 2018|
|Financing Plan||Loan Utilization|
|Total (Amount in US$ million)||Date||ADB||Others||Net Percentage|
|Project Cost||4,492.70||Cumulative Contract Awards|
Project Data Sheets (PDS) contain summary information on the project or program. Because the PDS is a work in progress, some information may not be included in its initial version but will be added as it becomes available. Information about proposed projects is tentative and indicative.
The Access to Information Policy (AIP) recognizes that transparency and accountability are essential to development effectiveness. It establishes the disclosure requirements for documents and information ADB produces or requires to be produced.
The Accountability Mechanism provides a forum where people adversely affected by ADB-assisted projects can voice and seek solutions to their problems and report alleged noncompliance of ADB's operational policies and procedures.
In preparing any country program or strategy, financing any project, or by making any designation of, or reference to, a particular territory or geographic area in this document, the Asian Development Bank does not intend to make any judgments as to the legal or other status of any territory or area.
|Title||Document Type||Document Date|
|Shah Deniz Gas Field Expansion Project: Completion Report||Project/Program Completion Reports||Sep 2022|
|Shah Deniz Gas Field Expansion Project: Project Administration Manual (Updated)||Project/Program Administration Manual||Sep 2018|
|Counter-Guarantee and Indemnity Agreement for Loan 3492-AZE: Shah Deniz Gas Field Expansion Project||Guarantee Agreements||Dec 2017|
|MFF Şah Dəniz 2-ci Mərhələ İnvestisiya Planı: Layihə Data Sənədi||Translated PDS||Mar 2017|
|Shah Deniz Gas Field Expansion Project: Report and Recommendation of the President||Reports and Recommendations of the President||Nov 2016|
|Shah Deniz Gas Field Expansion Project: Project Administration Manual||Project/Program Administration Manual||Nov 2016|
|Shah Deniz Stage II Investment Plan: Project Preparatory Technical Assistance Report||Project Preparatory Technical Assistance Reports||Apr 2016|
|Shah Deniz Stage II Investment Plan: Initial Poverty and Social Analysis||Initial Poverty and Social Analysis||Apr 2016|
Safeguard Documents See also: Safeguards
Safeguard documents provided at the time of project/facility approval may also be found in the list of linked documents provided with the Report and Recommendation of the President.
Evaluation Documents See also: Independent Evaluation
None currently available.
None currently available.
The Access to Information Policy (AIP) establishes the disclosure requirements for documents and information ADB produces or requires to be produced in its operations to facilitate stakeholder participation in ADB's decision-making. For more information, refer to the Safeguard Policy Statement, Operations Manual F1, and Operations Manual L3.
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