SIC projects extra gas plant funds but less oil tanker income
EXTRA funds Shetland Islands Council (SIC) is projected to receive from gas plant throughput this financial year is set to be met by reduced income from Sullom Voe tanker movements.
The SIC is expected to bank an extra £1.4 million in 2026/27 as a result of the Victory gas field north west of Shetland coming on stream late last year.
The council receives rent from the owner of the Shetland Gas Plant, which is located close to Sullom Voe Terminal, as well as money based on throughput.
The total projected gas plant income for the SIC for 2026/27 is now £2.6 million.
However, this is contrasted against a continued reduction in income the SIC receives from oil tankers using Sullom Voe Terminal.
In 2026/27 the SIC, which operates the Port of Sullom Voe, is projecting to receive £742,000 less in tanker dues than budgeted.
Only nine tankers used Sullom Voe Terminal in the first quarter of 2026/27, with the target being 18.
Overall the council is projecting a year-end revenue position for ports and harbours operations as a surplus of £3.117 million – a reduction of nearly £1 million on budget.
Among the reasons for the projected reduction in surplus is a £152,000 overspend for additional dry docking for the Sullom Voe tug Dunter for extensive steelwork replacement and remedial works following an engine survey.
A report to the SIC’s harbour board on Thursday also said marine gas oil was originally budgeted at 60p per litre, but the average annual price per litre is now expected to be 70p. This would result in a £65,000 overspend on budget.
Figures also show the projected overtime spend in ports and harbours is £1.376 million, which is above budget by £210,000. The vast majority of this is related to operations at Sullom Voe.
There were no questions or debate from councillors on the figures at Thursday’s meeting.
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