Progress made to increase terminal resilience, EnQuest reports
“GOOD progress” is being made to connect Sullom Voe Terminal (SVT) to the UK national grid, according to operator EnQuest.
In its latest update to shareholders, the company said carbon emissions from the terminal will reduce by 90 per cent once the ongoing work to “right-size” the terminal has been concluded.
The company now has also planning permission to erect two large wind turbines on the terminal ground, while it is also working in close co-operation with the Neshion energy park which is developing its project just outside the perimeter fence.
Several companies have been busy since last year digging up the main A970 and A968 roads to lay a 43-kilometre underground cable to will eventually see the terminal powered by grid electricity.
Once completed it will mean the terminal’s polluting gas plant, which operates under an extension of its licence, can be switched off.
Back in 2024, the conclusion of this project was scheduled for the end of 2026 or early in 2027.
In its latest update EnQuest only said the project was making good progress but did not give an update to the timeframe.
SSEN expects Lerwick Power Station to be able to go into standby mode later this year once Shetland is fully connected to the UK grid via the 600MW HVDC subsea cable which runs to Caithness.
EnQuest, through its Veri Energy subsidiary, holds two carbon storage licenses that incorporate the Magnus and Thistle fields, and is also involved in project to develop low-carbon fuel production in Shetland.
The net-zero e-fuel production project was successful in securing £760,000 of Scottish Government funding earlier this year.
In its report on the half year results, EnQuest further reported that the construction of a new stabilisation facilities at SVT was nearing completion, while work to decommission redundant legacy facilities was ongoing.
EnQuest said: “Together, these projects will provide the resilience required to extent SVT operations, which support production of boat East of Shetland and West of Shetland assets, whilst also retaining the potential for its repurposing for new business development, including the new energy projects managed by Veri Energy”.
Company chief executive Amjad Bseisu added: “We also remain committed to the UK North Sea and continue to see significant opportunities to create value through responsible stewardship, operational excellence and disciplined investment.
“With the fiscal solution already being available to government in the form of the Oil and Gas Revenue Levy (formerly named the Oil and Gas Price Mechanism), we are hopeful that the change in political leadership will be accompanied by a renewed focus on competitiveness, investment and energy security.”
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