BP takes FID on new Shetland gas pipeline
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BP has officially announced that they have commenced the construction of a gas pipeline at the Sullom Voe terminal located in Shetland. This project has been in discussion for quite some time.
The 'Shetland Crossover Pipeline' is a pathway that spans 0.8 miles. Its purpose is to link the Sullom Voe's gas sweetening facilities to the SIRGE pipeline. This connection ultimately joins the Shetland Gas Plant (SGP) and the St Fergus gas terminal in Aberdeenshire.
In its Q3 results released on Tuesday, BP (LON:BP) announced that it had made a final investment decision (FID) to proceed with the construction and operation of a new link in collaboration with its partners.
BP reported that the construction of the new infrastructure has already started after being sanctioned in September.
Besides establishing a supplementary path for exporting gas from the Clair field, the pipeline is also being engineered to support the transportation of extra gas yield from other offshore developments west of Shetland.
Advocates argue that the connection would offer a more straightforward way for the area's natural gas, such as that from the Clair field, to reach the market. This would then help to ensure the UK has a solid and dependable supply of energy.
In the past, the surplus gas derived from Clair, which was not utilized for producing power or lifting oil, was transported through a 10km connection and delivered to the Magnus field to be employed in enhanced oil extraction, or it was exported in a southern direction from there.
The SIRGE pipeline has a capacity of 665 million cubic feet and travels from the Shetland Gas Plant, which is operated by TotalEnergies, to a subsea tie-in on NSMP's FUKA pipeline. It then continues on to St Fergus, which is located on the mainland of the United Kingdom.
The senior vice president of BP North Sea, Doris Reiter, issued a statement to Energy Voice expressing delight that the construction of a vital energy facility had commenced. This infrastructure is intended to bolster the United Kingdom's security of energy supply and create an extra option for exporting West of Shetland gas.
Brenda Wyllie, who manages the West of Shetland and Northern North Sea area for the North Sea Transition Authority (NSTA), was also pleased with the announcement.
According to her, the energy security of the UK will be enhanced through the pipeline, as it will offer an extra and more straightforward path to sell gas from the West of Shetland.
The National Science Teachers Association worked together in close partnership with the business sector to present the rationale for this initiative and we are extremely satisfied that it is progressing forward.
The ownership of the pipeline will be completely vested in the Clair joint venture, comprising collaborators Shell, Harbour Energy, and Chevron, while BP will run the operations.
For several years now, EnQuest, the operator of Sullom Voe terminal, has been engaged in commercial talks about developing new gas infrastructure. However, there have been concerns that a different path could be established that wouldn't require going through Shetland.
Last year, BP expressed its desire to come to a conclusion regarding the project by 2020, but unfortunately, a consensus was not achieved.
The most recent plan update was shared during the summer of 2022. At that time, it was proposed that NSMP, which is owned by SIRGE, would construct, own, and manage the anticipated connection.
During that particular moment, NSMP stated that they had presented a request for planning authorization to put up a pipeline and related structures above the ground before the Shetland Islands Council.
It is currently known that the company has withdrawn from the project.
