Energy / No change to operations at gas plant amid Prax uncertainty
THE SHETLAND gas plant looks set to be unaffected by news of financial difficulties within energy company Prax – the firm which had been lined up to buy the facility.
A spokesperson for TotalEnergies said the sale of its West of Shetland assets to Prax have not yet gone through – meaning it is still the operator of the gas plant and related fields, and not Prax.
The issues with Prax also appear to focus on the company’s Lindsey oil refinery in England.
The proposed sale of TotalEnergies’ West of Shetland related assets to Prax was announced last year.
TotalEnergies was unable to give any update on the sale process.
However a planning submission was filed in at the end of May relating to transferring the gas plant’s existing hazardous substances consent from TotalEnergies to Prax Upstream Limited.
These planning documents said TotalEnergies’ transfer of its interest in the plant to Prax is “anticipated to be complete in late June 2025”.
It was announced earlier this week that jobs were at risk at Prax’s Lindsey oil refinery in the North East of England.
The refinery has fallen into insolvency, while Prax Group’s parent company State Oil Limited has gone into administration, along with some other subsidiaries.
A spokesperson for administrator Teneo said Prax’s upstream interests “remain outside of insolvency at this stage” – although a sale of assets could be explored.
They also said that “as things stand there are no changes to operations at the Shetland Gas Plant”.
Last year it was announced that Prax would be buying TotalEnergies’ Shetland interests, including the gas plant near Sullom Voe Terminal.
The sale also included TotalEnergies’ interests in the Greater Laggan Area fields to the west of Shetland.
In 2023 Prax also acquired Hurricane Energy, a UK-based oil and gas exploration and production company with a 100 per cent operated interest in the Lancaster offshore oil field in the West of Shetland basin.
Last year Prax said the proposed acquisition of TotalEnergies’ Shetland interests was the “beginning of the next exciting chapter in our history”.
Construction started on the Shetland Gas Plant in 2010 and six years later it was taking in gas from fields north west of the isles by pipeline.
The facility processes the gas and then sends it off again through a 230km pipeline which helps to take the export to the St Fergus Gas Terminal in Aberdeenshire.
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