The collaboration between Switzerland and Azerbaijan in the field of high technology is entering a new phase. Swiss engineering company ABB, a global leader in electrification and automation, has launched a large-scale project at the Sangachal terminal — Azerbaijan’s largest oil and gas facility and one of the most important energy hubs in the region.
This initiative is not merely a technical upgrade. It represents a strategically significant step in Azerbaijan’s transition toward a more resilient and efficient energy infrastructure. ABB will supply and install four custom-designed synchronous condensers, enabling the decommissioning of the gas turbines that previously powered the terminal. These units will be integrated with ABB’s distributed control system, ABB Ability™ System 800xA, providing not only reduced capital and operating costs but also greater control, grid stability, and long-term operational resilience.
The relevance of the project extends far beyond the energy sector. Azerbaijan has set ambitious decarbonization goals: to increase the share of renewable energy to 30% by 2030 and reduce greenhouse gas emissions by 40% by 2050. In this context, technologies that provide inertia, reactive power, and short-circuit support are essential for maintaining power system stability — especially as variable sources like wind and solar continue to grow. Between 2022 and 2023, the share of renewables in Azerbaijan’s power generation mix increased from 6% to 8%, and this trend is expected to accelerate.
For ABB, the project builds on more than 25 years of continuous presence in Azerbaijan and reflects the company’s long-term strategy of supporting sustainable infrastructure transformation in resource-rich economies. As Per Erik Holsten, President of ABB’s Energy Industries division, noted, the company’s mission goes beyond the deployment of equipment — it is about helping industrial partners become more efficient, more sustainable, and more technologically advanced.
Implementation at the terminal began in February 2025, within the framework of a five-year global agreement between ABB and bp, signed in September 2024. The estimated timeline for completion is 24 months. Once completed, the Sangachal terminal — which currently processes up to 1.2 million barrels of oil and around 81 million cubic meters of gas daily — will be fully powered by the national grid, eliminating the need for on-site fossil-fuel-based generation.
From a political and economic standpoint, the project illustrates the growing trust in Swiss engineering expertise and the deepening of bilateral cooperation in the field of sustainable technologies. For Azerbaijan, this is not just a technological upgrade — it is part of a broader national strategy aimed at modernizing critical infrastructure and adapting to the imperatives of the green transition.
