EnQuest forms new company to push forward plans to turn SVT into ‘green energy hub’
THE OPERATOR of the Sullom Voe Terminal has launched a new subsidiary company which will oversee new energy projects including plans to turn the site into a “green hub”.
EnQuest said it will still remain the operator of the terminal, while supporting the new energy opportunities on site.
The company has previously announced proposals for hydrogen production at the terminal, as well as facilitating carbon capture and storage.
This is whilst the oil and gas industry slows in the lead up to net zero.
The new wholly owned subsidiary is called Veri, and EnQuest said it will focus on “progressing world scale decarbonisation and new energy projects, including carbon capture and storage, green hydrogen, and electrification at the Sullom Voe Terminal (SVT)”.
EnQuest has previously spoken of its desire to decommission its gas-fired power station at SVT, operated by Equans, and to join the local electricity network once Shetland is connected to the national grid via the subsea HVDC link.
EnQuest chief financial officer Salman Malik has now taken up the role of CEO of Veri.
The company added that Veri “provides an opportunity to leverage support from financial and strategic partnerships”.
In 2022 EnQuest said it had “secured exclusivity from the Shetland Islands Council to progress new energy opportunities on the site to achieve value for the Council, the Shetland community and EnQuest”.
Speaking on Thursday, SIC chief executive Maggie Sandison said the local authority had been aware of EnQuest’s intention to form a subsidiary company.
She added that the council has regular engagement with EnQuest about its routemap for an energy transition including its “world leading plans for carbon capture and storage, green hydrogen, and electrification at the Sullom Voe Terminal”.
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Sandison continued: “The council speaks to all existing and prospective energy developers about the expected commitment to Shetland Islands Council’s energy development principles including delivering benefit to the local community, environmental protection, local supply chain opportunities and sectoral co-existence.”
A spokesperson for EnQuest also said due to Veri being a subsidiary of the terminal operator there will be no change to the make-up of the Sullom Voe Association, which brings together oil and gas companies and Shetland Islands Council.
Meanwhile Malik said: “I am proud that as EnQuest’s CFO we delivered strong financial results, significantly de-levered the balance sheet and strengthened the capital structure.
“I am passionate about energy transition and committed to establishing Veri as a leading infrastructure and new energy company.
“Through Veri, we initially plan on transforming SVT into a green energy hub, with ambitions to export those capabilities to other assets internationally in the future.”
Not far away from Sullom Voe Terminal, Statkraft plus partners are in line to lease the nearby former Scatsta Airport site from Shetland Islands Council.
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