Siemens wins Shah Deniz power project

May 9, 2014

Siemens Energy has received an order to deliver customized direct electrical heating (DEH) power supply systems for ten subsea flow lines, with an option for two additional systems.

The customer is BP Exploration and all the systems are to be deployed on BP-operated Shah Deniz gas field in the Azerbaijan sector of the Caspian Sea.

Delivery of the equipment is scheduled for end of 2015. Siemens scope of supply for the Shah Deniz Stage 2 development project includes the delivery of customized topside DEH power supply systems to be used on ten subsea flow lines to prevent hydrate formation during planned and unplanned process shutdown.

The project will use a Nexans DEH system - read more: Nexans cables on Shah Deniz

Deepwater natural gas reservoirs and low temperatures induce hydrate formation, which can cause flow assurance challenges such as flow line blockage or reduced capacity.

The DEH systems, provided by Nexans with power from Siemens, will contribute to a consistent flow of hydrocarbons despite challenging fluid characteristics and temperature conditions at the seabed.

The respective modules of the systems contain power components as well as a unique control and protection system for the topside equipment and subsea DEH cables. They will provide power for the heating of pipelines when required by the operations and will be installed on the platform deck. 

The order includes full-load testing of the containerized systems that simulates real-life conditions to verify the integrity and full functionality of the system before shipment to Azerbaijan. This is key in order to ensure the reliability and availability required for this type of critical equipment.

This award follows Statoil's May 1st announcement that the firm completed divesting 10% of its 25.5% interest in the Shah Deniz project. Buyers are SOCAR (6.7%) and BP (3.3%). Statoil will receive a total cash consideration of US$1.45 billion.

In December 2013, Statoil announced the divestment saying that it is in line with the company's strategy of portfolio optimization based on rigid prioritization of future investments, and capturing value created from a significant gas position.

Read more:

Shah Deniz 2 takes off

Shah Deniz 2 agreed



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