Sullom Voe oil and gas terminal in Shetland has a bright future as a major hub for the UK’s net-zero future, says the man leading its energy transition.
The positive outlook for an asset that has played a key role in Britain’s offshore fossil fuel production story over many decades is from Salman Malik, who will deliver Prosper’s 20th anniversary Annual Lecture at P&J Live in Aberdeen later this week.
Thursday night’s event is a sell-out, with 400 guests expected.
The Annual Lecture is a mainstay of the business calendar in the north-east.
Past speakers include Wood chief executive Ken Gilmartin and Louise Kingham, who heads up BP’s business in the UK.
Mr Malik is the CEO of Veri Energy, a recently launched subsidiary of Norh Sea oil and gas producer EnQuest. He was Enquest’s chief financial officer, and also its managing director for infrastructure and new energy before taking on his new role late last year.
Veri is responsible for managing EnQuest’s infrastructure and new energy business in line with the London-listed group’s corporate ambitions and net-zero commitment.
Mr Malik, who remains part of EnQuest’s boardroom team, is particularly excited about creating a pathway for decarbonisation and new energy opportunities at Sullom Voe.
What next for Sullom Voe?
EnQuest operates the huge terminal on behalf of a consortium of oil companies. The complex receives oil from fields east and west of Shetland before shipping it worldwide.
Concerns over the terminal’s future in a declining UK oil and gas industry have been around for years.
Mr Malik wants to give it a new lease of life.
Although a reimagining of the “prized asset” has “been in the works for some time, he told The Press and Journal his non-oil and gas background allowed him to look at Sullom Voe and other key North Sea infrastructure “differently”.
Life before oil and gas
He came to EnQuest 11 years ago with a CV boasting roles in investment banking and private equity.
“I didn’t know much about climate change and the impact of the hydrocarbons industry back then,” he said.
His own journey in oil and gas has coincided with the industry’s accelerating momentum towards energy transition.
EnQuest’s ambitions to hit net-zero by 2040 include carbon capture and storage (CCS), North Sea oil and gas electrification, and green hydrogen projects. The company secured offers of four CCS licences in the North Sea Transition Authority’s recent offshore allocation round.
Sullom Voe is at the heart of these plans and the 1,000-acre site and associated infrastructure – such as pipelines which will in future carry CO2 – are being remodelled accordingly, MrMalik said.
‘Planting the seeds’ for UK energy transition
While other countries spend billions on new energy infrastructure, “capital light” projects to transform existing North Sea facilities can help deliver the UK’s net-zero ambitions, he added.
He continued: “The future of Sullom Voe will be rooted in the energy transition.”
The terminal can become a showcase for “world-class” transition projects in the UK and hub for a major new export industry, he said, adding: “We have planted the seeds.”
Speaking about his upcoming date at P&J Live, Mr Malik said: “I’m honoured to have been invited.
“It’s a pivotal time for us all in the context of climate change and the existential threat that poses.
“Our united efforts towards sustainable energy solutions are more crucial than ever.”
Prosper is the new name of the Scottish Council for Development and Industry.
Port of Aberdeen CEO Bob Sanguinetti is the business group‘s north-east committee chairman.
Mr Sanguinetti hailed the Annual Lecture as a chance for delegates to “network with a truly diverse cross-section of our membership base to explore the opportunities and challenges we face to achieving economic growth and prosperity for Scotland.”
Conversation