SOCAR and an international consortium signed the Production Sharing Agreement (PSA) establishing the legal and commercial framework for exploration and development of the Shah Deniz offshore block—foundational for all subsequent field development and export planning.
Azerbaijan’s parliament ratified the Shah Deniz PSA, helping bring the agreement into force and enabling the operator and partners to proceed with the project’s contractual work program.
The first exploration well on the Shah Deniz licence confirmed a significant gas and condensate discovery offshore Azerbaijan, turning the PSA from an exploration venture into a major development and export opportunity.
Azerbaijan and Turkey signed intergovernmental and sale/purchase agreements supporting long-term Azerbaijani gas exports to Turkey—key to monetizing Shah Deniz gas through cross-border infrastructure.
Azerbaijan and Georgia concluded intergovernmental and related agreements for transporting and selling gas, anchoring Georgia’s role as a transit state on the export route to Turkey.
Partners sanctioned Shah Deniz Stage 1 development alongside the associated South Caucasus Pipeline (SCP) concept, formally committing to build production facilities and a dedicated export pipeline to the Georgian–Turkish border.
Commissioning gas was introduced into the South Caucasus Pipeline system from the Sangachal terminal, a key pre-startup milestone before deliveries to export markets could begin.
First deliveries through the SCP commenced, demonstrating operability of the export route connecting Azerbaijan through Georgia to the Turkey border ahead of Shah Deniz field start-up.
First production from Shah Deniz—announced on 15 December 2006—marked the start of Stage 1 and enabled sustained gas supply to Azerbaijan’s domestic market and exports to Georgia and Türkiye via the SCP.
The Shah Deniz consortium chose the Trans Adriatic Pipeline (TAP) over Nabucco West as the European export route for Shah Deniz Stage 2 volumes, shaping the downstream architecture of the Southern Gas Corridor.
The Shah Deniz partners took the final investment decision (FID) for Stage 2, triggering commitments across the integrated value chain, including South Caucasus Pipeline Expansion (SCPX) and the new export pipelines forming the Southern Gas Corridor.
The Trans-Anatolian Natural Gas Pipeline (TANAP)—the central corridor carrying Shah Deniz 2 gas across Türkiye—formally commenced construction following a groundbreaking ceremony, moving the Southern Gas Corridor toward physical delivery capability.
Azerbaijan held the official inauguration event for the Southern Gas Corridor at the Sangachal terminal, signaling completion of major components needed to begin Shah Deniz 2-driven deliveries through the expanded corridor.
TANAP’s initial phase was inaugurated in Türkiye, a major midstream milestone enabling Shah Deniz 2 gas to cross Türkiye toward the Greek border and onward to Europe via TAP.
Commercial deliveries of Shah Deniz 2 gas to Türkiye commenced, marking the start of Stage 2 sales along the Southern Gas Corridor and aligning with the start of gas supply through TANAP’s Phase 0.
The South Caucasus Pipeline Expansion (SCPX) started operating, increasing throughput capacity and enabling transportation of additional Shah Deniz 2 volumes from Azerbaijan through Georgia to the Türkiye interconnection.
The opening of the wing valve on a North Flank subsea well marked first production from the Shah Deniz Bravo platform—an offshore Stage 2 start-up milestone that expanded field production capacity.
Shah Deniz gas field development and export initiatives (1999–2018)
