Total sells off partial stake in gas plant

THE OPERATOR of the Shetland Gas Plant has agreed to sell a 20 per cent stake in the facility – as well as in fields to the west of Shetland.

The deal between TotalEnergies and Kistos Energy Limited will amount to at least $165 million.

It will see TotalEnergies sell a 20 per cent interest in the Greater Laggan Area fields and the Shetland Gas Plant.

It also includes interests in several nearby exploration licenses.

Following completion of the transaction, TotalEnergies E&P UK Limited will hold a 40 per cent operated interest in the Laggan, Tormore, Glenlivet, Edradour and Glendronach fields, including infield facilities and the onshore Shetland Gas Plant, alongside partners Kistos (20 per cent), Ineos E&P UK Limited (20 per cent) and RockRose UKCS15 Limited (20 per cent).

The transaction, which has an effective acquisition date of 1 January 2022, is subject to the approval of the UK authorities.

Kistos executive chairman Andrew Austin said: “The deal increases our gas production and complements Kistos’ strategy in the Netherlands.”

The Shetland Gas Plant, located near Sullom Voe Terminal, opened in 2016 to take in gas from fields west of the isles by pipeline.

It currently supplies enough gas for around two million UK households.

The gas plant operator recently lodged a planning application with Shetland Islands Council to build a mercury removal plant on site, a facility needed to process gas from the Glendronach field.