Energy supermajor BP has confirmed funding plans for a proposed new pipeline from Sullom Voe terminal in Shetland.
The near mile-long connection would link the facility with the Shetland Island Regional Gas Export System (Sirge).
It would, therefore, also connect the Shetland gas plant with the St Fergus terminal, near Peterhead.
As such, it would provide a more direct route to market for gas from the west of Shetland, including BP’s Clair field.
BP has confirmed there is a funding plan now in place, but the firm is understood to be still mulling its options for the continued export of oil from the region to Sullom Voe.
Commercial discussions have been taking place with terminal operator EnQuest for several years and there are fears BP could yet choose to bypass Shetland.
According to BP, the proposed new gas pipeline would provide a “new connection” between existing systems, bolstering “security of supply” from the west of Shetland.
As well as creating an “additional long-term export route” for gas from the Clair field, it would also serve other projects in the region.
A planning application has been lodged with Shetland Islands Council by North Sea Midstream Partners (NSMP), which would build, own and operate the pipeline. The submission also covers above ground facilities.
Depending on approval time, work on the new infrastructure could kick off next year and a potential start up is being targeted by the end of 2024.
A spokesman for BP said: “The pipeline, which would be built, owned and operated by NSMP would be installed between the Sullom Voe terminal and the existing Sirge pipeline and provide a new connection between existing independent pipeline systems, assisting in the protection of security of supply of west of Shetland gas to the UK gas market.”
Planning consent a ‘critical’ step
He added: “In addition to creating an additional long-term export route for gas from the Clair field, the new pipeline would be sized to accommodate gas production from other west of Shetland developments.
“NSMP has submitted a planning application for installation of the 1.25-kilometre (0.9mile) pipeline and associated above ground facilities to Shetland Islands Council for its consideration.
“Approval of the planning application is a critical step to enable construction to commence in 2023, with the pipeline targeted to be operational by the end of 2024.”
EnQuest, which took over operatorship of the terminal from BP in 2017, has been locked in talks with the oil giant in an effort to convince it to keep using the facility.
It is feared that if BP does not commit its long-term future to the terminal, Sullom Voe could close as soon as 2025.
Ineos (18.26%), Chevron (7.18%) and Siccar Point Energy (7.52%) all have a stake in the facility, which allows for the export of gas from west of Shetland to the UK mainland.
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