Shah Deniz gas field is the largest natural gas field in Azerbaijan. It is situated in the South Caspian Sea, off the coast of Azerbaijan, approximately 70 km southeast of Baku, at a depth of 600 m. The field covers approximately 860 km2. Stretching out over 140 square kilometres, the reservoir is similar in size and shape to Manhattan Island.
It is considered to be a founding link for the Southern Gas Corridor, aiming to bring additional and alternative natural gas volumes to EU member countries.
History
The “Exploration, Development, and Production Sharing Agreement" (PSA) for Shah Deniz area was signed between SOCAR and some oil companies of foreign countries on June 4, 1996. Azerbaijani Parliament confirmed the PSA document on October 4, 1996. The Shah Deniz gas and condensate field was discovered in 1999. “An Intergovernmental” Agreement and a “Sale and Purchase” Agreement were signed by delegates of Azerbaijan and Turkey with the participation of President Sezer and President Heyder Aliyev in Ankara on March 12, 2001.[3] "An Intergovernmental" Agreement and relevant agreements for the carrying and selling of natural gas were signed by delegates of Azerbaijan and Georgia with participating of President Shevardnadze and President Aliyev on September 29, 2001. Some contracts for the construction of the first stage of Shah Deniz were concluded on June 5, 2003, and Construction work for Shah Deniz began at Sangachal Terminal on November 3 of the same year.