First Laggan-Tormore gas by September: Petrofac statement

The Shetland gas plant being built for Total's Laggan-Tormore Project will have gas flowing into it by September, according to a trading update by contractors Petrofac.

The company say: "Construction activities on the Laggan-Tormore project are substantially complete; we are now busy with final completion and pre-commissioning-related activities and our focus remains on delivering first gas in Q3 2015; additional completion and pre-commissioning works are expected to lead to incremental pre-tax costs of approximately £30m; deferred tax asset recognised in respect of tax losses on the project of approximately £20m."

Full Petrofac statement here:http://www.petrofac.com/media/news/2015/june/23/trading-update.aspx

Shetland News story, with background, here: http://www.shetnews.co.uk/news/10916-petrofac-hopeful-of-first-gas-by-end-of-summer

Total to sell Laggan-Tormore for £1 billion - Reuters report

French energy giant Total is planing to sell its Laggan-Tormore gas field, according to the news agency Reuters, quoting 'banking sources'. The gas plant associated with the field is still under construction at Sullom Voe in Shetland and is due to be completed by contractors Petrofac by the end of September, several months behind schedule.

Reuters report that Total will seek around £1 billion for their 80 per cent stake in the field. Development costs for Laggan-Tormore are thought to be approximately £3.5 billion.

Total has refused to comment.

Full Reuters story here: http://uk.reuters.com/article/2015/03/11/total-northsea-idUKL5N0WD3V820150311

Petro Global News follow up here: http://petroglobalnews.com/2015/03/report-total-mulling-sale-of-laggan-tormore-field/

Total gas plant 'completed by end of September' - new accommodation ship arrives, 2000 staff on site

The Laggan-Tormore Total gas plant contract at Sullom Voe will be completed by the end of September, according to a spokesman for Petrofac.

The company now has five floating accommodation units in Shetland - three barges and two liners. The latest, former cruise ship SNAV Toscana, arrived in Lerwick at the weekend. An incoming workforce of 2000 is now involved in the project.

Full story from The Shetland Times here: http://www.shetlandtimes.co.uk/2015/03/07/new-accommodation-ship-arrives

New start date for BP gas sweetening plant in Shetland

Work by contractors Petrofac on constructing BP's new £500m gas sweetening plant at Sullom Voe in Shetland will begin six months later than scheduled, in early 2016. Clearance of the 16 hectare site will begin later this month and BP say the delay will let the company take advantage of improved weather and actually speed up completion.

BP has been looking at rescheduling some capital projects due to the oil price crash.

A BP spokesperson said:

“This helps us to reset the project to better weather windows. That will reduce the project time, which is beneficial and allows us to look at the project again to make sure it is as efficient as it can be. Everyone is looking at  capital projects and seeing where we could benefit from slowing down."

Story from The Shetland News here.

Shetland - the place to be. New film about oil and gas activity in the isles

A new film looking at Shetland's capabilities when it comes to oil and gas exploration and production in the North Sea and North Atlantic. More films soon about decommissioning and renewables.

Shetland 'remains key' for future BP developments

Despite the announcement of redundancies in the North Sea sector, BP has confirmed that while there may be a few job losses among office staff in Shetland, its activity at Sullom Voe "remains key" and planned developments including the multi-million pound gas sweetening plant and multi-billion pound investments in the North Atlantic fields such as Schiehallion will continue.

Story from Shetland News here: http://www.shetnews.co.uk/news/10003-bp-to-shed-some-sullom-voe-office-jobs

Shetland 'extremely desirable' for BP employees - SVT manager

BP's  Area Operations Manager at the Sullom Voe Oil Terminal in Shetland, Steve Cowie, says the isles are proving a very desirable posting for prospective employees. The attractions of the community have been important in attracting new skilled workers from all over the world to the isles, as BP carry out major refurbishment works at SVT and prepare for the construction of a new gas sweetening plant on site.

A new rotational working system has been introduced, offering a two weeks on, three weeks off system similar to that employed on offshore rigs and platforms.

Full details are in an article in the magazine Rigzone here: http://www.rigzone.com/news/oil_gas/a/133853/Onshore_Shetland_BPs_Sullom_Voe_Recruitment_Drive/?all=HG2

An interview with Steve will be available next year as part of a video project currently being carried out by Promote Shetland and Highlands and Islands Enterprise.

Shetland Gas Plant - exclusive pictures

Promote Shetland is in the process of making a series of films about the energy industry in Shetland for Shetland Islands Council and Highlands and Islands Enterprise. Last week saw the team meeting up with Total's Shetland Gas Plant manager Dave Wink and touring the site.

Looking down over the gas plant to Sullom Voe beyond.

Foundations for a fence!

Probably the strongest fence in the UK...

Road to riches. Beneath this track is the Laggan-Tormore gas pipeline.

Dave Wink, Shetland Gas Plant Manager, Total.

£500m Shetland gas sweetening plant gets planning permission

BP's £500m gas sweetening plant at the Sullom Voe Oil Terminal in Shetland has received planning permission from Shetland Islands Council.

Also to be used by Total, which is close to completion of its own massive gas plant on an adjoining site, the BP project will take  three years to build, employing 500 workers. 

It is expected to last 25 years and will employ around 33 full-time workers when fully operational.

Full Shetland Times story here: http://www.shetlandtimes.co.uk/2014/06/11/approval-for-550-million-gas-sweetening-plant/

100 jobs to be created at Sullom Voe by BP

A £600m investment by BP at Sullom Voe in Shetland will see 100 new jobs created.
BBC story here http://www.bbc.co.uk/news/uk-scotland-north-east-orkney-shetland-27070041

New gas sweetening plant and reorganising of workforce rota system on 'offshore' basis, aimed at attracting specialised skills from outside the isles.

Shetland Times story here: http://www.shetlandtimes.co.uk/2014/04/17/boom-time-again-at-sullom-voe/

Shetland Islands Council goes for biomass at Sella Ness

Shetland Islands Council's port administration building at Sella Ness, next to one of Europe's biggest oil and gas terminals, Sullom Voe, will be heated by wood pellet boilers supplied by Windhager UK. Full story from Specification Online here: http://specificationonline.co.uk/news-article/6017/windhager-shetland-islands-council-chooses-windhager-uk-biomass-boilers

Another accommodation barge could avert Sullom Voe strike threat

Solution to the threatened strike at the Sullom Voe gas plant construction could be on the cards, says The Shetland Times - if yet another floating accommodation unit can be brought to the isles.

http://www.shetlandtimes.co.uk/2014/01/15/concrete-solution-offered-in-gas-plant-dispute/

Massive increase in Sullom Voe workforce - urgent need for engineers

BP announces "new lease of life" for Sullom Voe oil terminal - doubling of workforce as Clair and Schiehallion work escalates.

Terminal manager Arthur Spence states that experienced oil and gas people are needed in Shetland, especially trained engineers.

“Shetland has some, but not enough with the skills and experience that we need,” he said.

Full story at The Shetland News

Totally cooking on gas!

It's going to be Shetland's biggest hotel, with 100 rooms. And it's guaranteed to be a success.

The Moorfield Hotel in Brae, near the Sullom Voe Oil Terminal, Scatsta Airport and the new Total gas plant, hub of the massive Laggan-Tormore pipeline development, will open in August with all the accommodation booked by Total for 12 months. And for the following six years, 80 per cent of the rooms will also be reserved for the French firm's employees.

Local folk and tourists will be welcome to eat and drink at the 48,000 sq ft Moorfield - and up to 40 jobs will be created, say developers and management company Redefine BDL Ltd.

At the moment, two accommodation barges moored in Lerwick, another in Scalloway plus a temporary accomodation unit at Sella Ness, are being used to accommodate workers.

Shetland is buzzing with hydrocarbon activity at the moment, both on and offshore.

- Laggan-Tormore: On completion the Shetland gas plant will  process up to 500 million standard cubic feet of gas per day, employing 70 people. The entire project is expected to cost around £2.5bn. 

Latest News: York firm wins contract for blast-proof substations

- Viking Energy: Plans for one of the biggest land-based windfarms in Europe are progressing. It is expected to begin exporting green energy in 2018.

- BP: redevelopment of the Schiehallion field west of Shetland and in the North Sea, the Clair Ridge and Clair South-west developments

-Decommissioning - major developments along the Lerwick waterfront by Lerwick Port Authority and Peterson SBS, among others.

-Aegir wave farm project - a joint venture between Pelamis and Vattenfall

Check out the online Power from the North magazine here:

And subscribe to this blog for weekly updates on Shetland's energy businesses. We're on Twitter too and there will be daily updates on Shetland energy news there.