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Shetland Gas Plant officially opens

Shetland Gas Plant started production in early February 2016 - Photo: Total

THE UK Government secretary of state for energy and climate change, Amber Rudd MP, will be in Shetland today (Monday) to be present at an event to celebrate the inauguration of the massive Laggan-Tormore West of Shetland gas project.

French energy giant Total (60 per cent) and partners DONG (20 per cent) and SSE (20 per cent) have spent around £3.5 billion to unlock the two gas fields, which are located in around 600 metres of waters to the west of Shetland.

Laggan-Tormore began pumping gas to the Shetland Gas Plant on 7 February, and production has since ramped up to the full production capacity of 90,000 barrels of oil equivalent per day (boe/d).

The gas fields are seen as crucial for the UK’s energy security and are expected to provide the domestic market with eight per cent of its daily gas requirements.

Total, and partner DONG, are also developing neighbouring gas fields Edradour and Glenlivit, which will eventually feed into the existing infrastructure.

Initially planned to be completed in summer 2014, the challenging project has been plagued with delays and rising costs. Main contractor Petrofac has said it had so far lost £350 million on the contract.

The energy secretary said the opening of Laggan-Tormore was a vote of confidence in the offshore oil and gas industry.

“North Sea oil and gas is crucial to our energy mix and this government is clear that the broad shoulders of the UK are firmly behind this vital industry and the thousands of workers and families it supports.

“We are 100 per cent committed to helping our oil and gas industry attract investment, unlock new potential and remain competitive for the future,” she said.

Chairman and chief executive of Total, Patrick Pouyanné, added: “The Laggan-Tormore development demonstrates Total’s continued commitment to the United Kingdom.

“By opening up its third production hub in the frontier deep offshore waters of the West of Shetland, Total is also improving the United Kingdom’s long-term energy security.

“This subsea-to-shore development is the first of its kind in the country and will provide the domestic market with eight per cent of its daily gas requirements while enabling the potential for further developments in the West of Shetland area.”