Azerbaijan: Shah Deniz Gas Field Expansion Project
The upstream project includes construction of 26 subsea wells, two offshore platforms, gas and condensate subsea pipelines, expansion of the Sangachal terminal, two 900 mmscfd gas compressors, and connection to the South Caucasus Pipeline.
Private Sector Operations Department
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|Project Name||Shah Deniz Gas Field Expansion Project|
|Borrower/Company||Ministry of Finance, Government of Azerbaijan
Southern Gas Corridor CJSC
|Type or Modality of Assistance||
|Strategic Agendas||Inclusive economic growth
|Drivers of Change||Partnerships
Private sector development
|Sector / Subsector||
Energy / Oil and gas transmission and distribution
|Gender Equity and Mainstreaming||No gender elements|
|Responsible ADB Department||Private Sector Operations Department|
|Responsible ADB Division||Infrastructure Finance Division 1|
|Responsible ADB Officer||Singh, Samarendra|
|Project Sponsor(s)||Ministry of Economy and Industry, Government of Azerbaijan
State Oil Company of the Azerbaijan Republic
|Description||The upstream project includes construction of 26 subsea wells, two offshore platforms, gas and condensate subsea pipelines, expansion of the Sangachal terminal, two 900 mmscfd gas compressors, and connection to the South Caucasus Pipeline.|
|Objectives and Scope||(1) To increase the output of one of Azerbaijan's most important economic generators, (2) to establish Azerbaijan a peer in the regional economy in contributing to the promotion of value-added industries such as downstream processing, and (3) to generate substantial employment in Azerbaijan.|
|Linkage to Country/Regional Strategy||The project is aligned with the Azerbaijan country partnership strategy (CPS) 2014-2018, specifically in the support of select downstream petrochemical investments. A successful financing for the Shah Deniz Gas Field Expansion project will demonstrate to the international community, the bankability of large-scale financings for upstream and downstream gas projects in the Azerbaijan.|
|Summary of Environmental and Social Aspects|
|Environmental Aspects||URS was appointed by BP to undertake the ESIA in November 2013. The main environmental issues are air quality, water and wastewater quality, noise and vibration level, marine and terrestrial biodiversity (flora and fauna), hazardous and non-hazardous wastes generation and occupational health and safety within the project's area of influence from gas condensate field development, construction works and operation of project facilities including associated infrastructure facilities.|
|Involuntary Resettlement||The State Oil Company of Azerbaijan Republic (SOCAR) is responsible for any land acquisition in connection with the project. The due diligence of the land acquisition process will confirm whether the actions are in accordance with ADB's safeguard principles and policy requirements. The Environmental and Social Compliance Audit report shall identify corrective actions, measures and recommendations to address the gaps identified, to comply with the Safeguard Requirements on Involuntary Resettlement.|
|Indigenous Peoples||The ESIA confirms that there are no indigenous communities in the project locations that will be impacted.|
|Stakeholder Communication, Participation, and Consultation|
|Timetable for assistance design, processing and implementation|
|Concept Clearance||18 Apr 2016|
|Credit Committee Meeting||25 Oct 2016|
|Approval||07 Dec 2016|
|Last PDS Update||29 Aug 2019|
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.
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|Title||Document Type||Document Date|
|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: Initial Poverty and Social Analysis||Initial Poverty and Social Analysis||Sep 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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