New Lerwick quay already open for business

The supply vessel Sea Trout was first to use the new berth

The high level of activity at Lerwick Harbour has meant the port’s latest deep-water quay  - the third new one in 21 months - being brought into use immediately on completion this week as part of an ongoing expansion of facilities.

The 100-metre Berth 7 at Greenhead Base provides an extension to a new 100-metre-plus quay added there in February 2012. Providing nine metres’ water depth, the two common-user quays service the oil and gas industry mainly.

Mair’s Quay, at 150 metres, completed this summer, will bring significant improvements in the fishing industry’s operations and provide the site for a replacement white fish market.

The three quays, at a total investment of £11.5 million, are part of a suite of quays and land reclamation consented in 2010, with the first contract award in December that year. Local contractor, Tulloch Developments, has successfully delivered the works on time and on budget, with design and supervision by Arch Henderson.

With three quays built within the last three years, the Authority is now turning its attention to its next capital projects as part of an ongoing investment plan.

Harbourmaster, Captain Calum Grains, said: “With the current high activity level, in the offshore sector in particular, and a positive outlook for the foreseeable future, the latest quay is a timely addition to our deep-water infrastructure. Development is ongoing to ensure we continue to meet new opportunities.”

Lerwick now has almost 4,000 metres of quay, including over 1,300 metres of deep-water berthing, following developments to accommodate larger vessels now operating. Investment of over £83 million by the Port Authority has taken place since the 1970s, much of it directed at the offshore industry.Additional laydown areas are being created and further deep-water berths are also in the pipeline.

Oilfield delays "may benefit Shetland's overheating economy" - Scott

Shetland MSP Tavish Scott has claimed that delays in developing the massive Rosebank oilfield off Shetland could actually benefit the local economy, according to a story in The Shetland News.

Delays and doubts announced over two oil developments off Shetland

In two separate announcements today, oil giant Chevron cast doubt on the viability of its $10bn Rosebank development west of Shetland, and Norwegian state company Statoil postponed $7bn of work on the Bressay field in the North Sea UK sector.

Chevron stated that Rosebank  “does not currently offer an economic value proposition that justifies proceeding with an investment of this magnitude", though it was still working with  partners OMV from Austria and Denmark's Dong Energy to make the project work economically. A final decision is expected next year.

Statoil is looking at simplified methods of extracting the Bressay field's heavily viscous oil. 

Both projects offer extreme technical challenges.

Read the full Chevron story courtesy of The Telegraph here, and about the Statoil announcement here, via Invezz.

New North Sea oilfield could bring many Shetland benefits

A £4 billion development in the North East Shetland Basin, the Kraken Field, has been given Government go-ahead and is likely to be a major source of business for Lerwick Port Authority. Full Shetland News story here.

Picture: Model and modules at Lerwick Harbour.

A traditional 'Shetland Model' boat at Lerwick with processing modules destined for the Laggan-Tormore gas plant at Sullom Voe in the background. The picture was taken as dusk began to fall.

A busy nine months at Lerwick Harbour

Increases in vessel arrivals and tonnage, as well as cargo, ferry passengers and fish landings

Activity in the oil and gas industry – both offshore and onshore – continues to be a driving force at Lerwick Harbour, with the latest traffic figures for the sector showing increases in the number and tonnage of vessels and in cargo handled this year.

In the first nine months of 2013, 534 offshore industry-related vessels used the deep-water port, an increase of 10%, with the tonnage up 42% at 3.1 million gross tonnes, compared to the same period in 2012. Cargo rose 28.5% to 137,958 tonnes.

Delivery of modules for the Shetland Gas Plant, under construction near the Sullom Voe oil terminal, contributed to the sector’s activity at Lerwick.

The total for all cargoes crossing the port’s near 4,000 metres of quays increased 15% to 856,800 tonnes. Vessel arrivals totalled 4,179, up 3%, with the tonnage of shipping ahead by 7.8% at 10.5 million gross tonnes.

The port’s capacity to handle large vessels is again reflected in the number of pilotage movements – at 1,168, up 12%, with the tonnage of vessels piloted rising 10% at 8.5 million gross tonnes.

There was a 6% increase to 107,069 in ferry passengers using the roll-on/roll-off service between Lerwick and Orkney and Aberdeen. Due to various factors affecting specific operators in the 2013 season, there was a forecast drop in cruise passengers – down 30% at 26,477. The total passenger figure, at 134,283, was reduced by 3%.

Between January and September, 44,512 tonnes of fish, worth £39.4 million, were landed, up 6% on volume and 17% on value. The 8,263 tonnes of white fish were valued at £12.6 million, an increase of 13% on volume and 4% on value, with the average price per tonne decreased by 8% to £1,533 per tonne. With less herring and more mackerel landed, the pelagic total was up 5% on volume and 26% on value, due to the higher proportion of mackerel.

Sandra Laurenson, Chief Executive, Lerwick Port Authority, commented: “2013 continues as a busy year, with growth across almost all sectors. The high level of activity by port users is backed by our ongoing development programme, with another deep-water quay due for completion in November.

“The recent grant of £515,315 from the European Regional Development Fund will help facilitate a £1.28 million project to create three new lay down areas, extending to 45,000 square metres and required to meet industry demand.”