S&P: Shah Deniz Compression project to increase gas production by 50BCM

The Shah Deniz Compression (SDC) project will provide Azerbaijan with additional production of approximately 50 billion cubic meters of natural gas and 25 million barrels of gas condensate, Olaylar informs referring to the S&P Global Ratings.

The final investment decision on the SDC project was made by the consortium in June 2025, and the total project cost is estimated at $2.9 billion.

S&P expects SOCARchr("39")s oil production in 2025 to remain at 2024 levels - 7-7.5 million tons of oil and 7-8.5 billion cubic meters of natural gas.

"SOCARchr("39")s own assets production in 2024 was of 7.5 million tons of oil and 7.7 billion cubic meters of natural gas," reads the message.

SOCAR is a wholly state-owned, vertically integrated oil and gas company operating across the entire value chain, from production to refining and sales.

The company owns refining and petrochemical facilities in Azerbaijan and Türkiye, as well as marketing and distribution networks in Azerbaijan, Georgia, Ukraine, Romania, and Switzerland.

SOCAR also holds equity stakes in key international projects, including a 31.65% stake in the Azeri-Chirag-Gunashli (ACG) field, which is expected to produce 16.8 million tons of oil and 13.6 billion cubic meters of associated gas in 2024.

The company also holds stakes in export pipelines supplying oil and gas from Azerbaijan via Türkiye, including a 32.97% stake in the Baku-Tbilisi-Ceyhan (BTC) oil pipeline.

SOCAR also controls a 51% stake in the Turkish petrochemical complex Petkim, a stake in the STAR refinery in Türkiye, which began operations in 2018, and conducts extensive trading operations through SOCAR Trading.

The Southern Gas Corridor (SGC), 49% owned by SOCAR and 51% by the government of Azerbaijan, owns 16% in the Shah Deniz project, 21.02% in the South Caucasus Pipeline (SCP), and 51% in the Trans-Anatolian Natural Gas Pipeline (TANAP).

The Shah Deniz field is undergoing two expansion projects: Shah Deniz 2 and Shah Deniz Compression (SDC). The Shah Deniz 2 project, largely completed, aims to increase production by 16 billion cubic meters of gas, of which 6 billion cubic meters will be supplied via the existing TANAP pipeline to Türkiye and 10 billion cubic meters via the TAP pipeline to Southern Europe. The project was completed in November 2020.