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.

Lerwick Harbour defies North Sea gloom to announce £12m quay contract

Plans for significant further expansion of Lerwick Harbour’s extensive deep-water facilities for the offshore oil and gas industry have advanced with the award of a major contract to extend the quay at Dales Voe South to support subsea developments and decommissioning.

Lerwick Port Authority has commissioned the Scottish business unit of civil engineering contractor BAM Nuttall as main contractor for an £11.95 million investment to lengthen the quay to 130 metres. Part of the Dutch construction group Royal BAM, BAM Nuttall specialises in complex marine construction, with a strong track record working around Scotland and on the Western and Northern Isles.

Lerwick has been servicing the offshore industry for over 50 years and now also has an established reputation as a location for decommissioning. The extended quay will provide deep-water, versatile berthing and heavy load capacity to take an offshore structure in a single lift, with a substantial, expanded laydown area.

Captain Calum Grains, Port Authority Deputy Chief Executive and Harbourmaster, said: “The contract marks an important step in further developing Lerwick’s role as a leading centre of offshore industry operations. Dales Voe South is another value-added expansion and reflects our confidence in future activity, including ongoing subsea projects, particularly west of Shetland, and the developing decommissioning and offshore renewable markets.”

As previously announced, the Scottish Government and agency, Highlands and Islands Enterprise, are providing £2.39 million in grant for the project, with Bank of Scotland supporting the Port Authority’s investment.

Work will begin in April, with completion due in April 2016. At peak, BAM expects up to 40 people to be employed directly in the construction of the new facility, with wider benefits spreading to local suppliers and subcontractors.

Commenting on the contract award, BAM Nuttall’s Business Unit Manager for Scotland, Dougie Grant said: ‘We’ve been tracking the proposals for Dales Voe for over a year now and we’re delighted to have been chosen by the Port Authority as their construction partner. We understand the positive impact this scale of investment can have locally and we look forward to engaging proactively with the Shetland community to ensure this benefit is fully realised.”

Civil Engineers, Arch Henderson LLP, is responsible for design and project management of one of the largest infrastructure developments in recent years in the Port Authority’s on-going programme.

The contract will extend the quay by around 75 metres, with a load-bearing capacity of 60 tonnes per square metre, making it unique in Scotland. It will have 12.5 metres water depth alongside, like the existing quay, amongst the deepest of its type in Scotland. The sheltered voe, located between oil basins east and west Shetland, has 24-hour access to the North Sea.

The extension will be complemented by increased, adjacent laydown for equipment and materials. A phased expansion underway in recent years will total 45,000 square metres by 2016.

Supreme court decision "about building future for grandchildren" says isles energy group

The Supreme Court's rejection of Sustainable Shetland's appeal against the Viking Energy windfarm in Shetland could mark the creation of a whole new industrial sector for the isles, according to a local energy firm.

The Shetland company Energy Isles, which is developing a wind farm project in Unst and Yell, welcomed the decision to let the Viking Energy project proceed.

Reacting to the final judgement issued by the Supreme Court in London, chairman Paul Riddell said Viking would open the door to further renewables projects that would significantly benefit Shetland communities. 

“It’s very rare that an island community with a successful but fragile economy gets to create a whole new sector, but that is what Viking and the interconnector will enable Shetland to do,” he said.

“This judgement gives Energy Isles the potential to bring much-needed income and employment to those areas of Shetland like Unst and Yell which are simply not benefiting from the current economic good times.”

He added: “It’s also about looking ahead 20, 30, 40 years and trying to build a future for our children and grandchildren when the world we take for granted today will have changed dramatically.” 

Last legal barrier to Viking Energy windfarm removed by Supreme Court

The UK’s final court of appeal  has dismissed an appeal against the Scottish Government's planning consent for the 103-turbine Viking Energy windfarm in Shetland, and declined to refer the case to the European Court of Justice.

Local campaign group Sustainable Shetland's argument that the effect on the population of Whimbrel was rejected.

The estimate of 3.7 annual

collision deaths was regarded as “very small” in the context of 72-108 annual deaths from other causes. The court was  "not satisfied" that the estimated impact of the development on whimbrel was

significant, and considered that the potential beneficial effects of the development's 'habitat management plan' could reasonably be

expected to provide "counterbalancing positive benefits". And even if the level of bird deaths remained, the level of impact was outweighed by the benefits of the project, for example in tackling climate change.

Full judgement available on the Supreme Court website here: https://www.supremecourt.uk/news/latest-judgments.html

Viking Energy chairman Alan Bryce said: 

“We are delighted the Supreme Court has endorsed the planning consent for Viking wind farm, granted in April 2012. We can now concentrate on developing what would be one of the world’s most productive wind farms, to generate renewable energy and significant income for the Shetland community.

“I would like to thank all who have supported us in reaching this positive outcome. Viking Energy looks forward to making progress during 2015.” 

Atlantic developments shield Lerwick Harbour from oil price drop

Lerwick Harbour will be shielded from falling oil prices by continuing subsea hydrocarbon developments in the Atlantic, according to the port's chief executive. And Lerwick's importance as a gateway for Shetland’s communities and industries is underlined by an increase in passenger traffic, cargo handled and fish landed in 2014.

"Continuing project support, especially for subsea development in the Atlantic, will help shield the port from the drop in the oil price, with the sector a significant area of our

activity for the foreseeable future,” said Sandra Laurenson.

Passengers were up 11.8% to 179,352, with numbers on the roll-on/roll-off nightly ferries between the port and Kirkwall and Aberdeen increased by 2% to 135,629 compared with the previous year, despite the two vessels being off-route in sequence for a total five weeks for biennial servicing. A recovery in cruise traffic saw passengers up by 64% to 43,723.

The tonnage of all cargo shipments across the deep-water harbour’s near-4,000 metres of quays increased 2% to 1,192,286 tonnes.

Fish landings totalled 69,973 tonnes, valued at £61.2 million – up 4.7% on volume and down 2.4% on value. The 9,700 tonnes of white fish were valued at £15.8 million, down 12% on volume and 7% on value, with the average price up 5% to £1,637 per tonne. In the pelagic sector, the volume and value of summer herring decreased, and an increase in mackerel was offset by a drop in prices in the autumn.

Lerwick Port Authority Chief Executive, Sandra Laurenson, said: “Overall levels were as predicted and the year ended on forecast, underpinning our financial performance and confidence in the continuing development of the port.

“There are a number of positives going forward. For example, the 52 cruise ships booked this year are ahead of 2013 which was a record year for passengers. Increases in some key fishing quotas should mean higher landings. Continuing project support, especially for subsea development in the Atlantic, will help shield the port from the drop in the oil price, with the sector a significant area of our

activity for the foreseeable future.”

There were 5,078 vessel arrivals in 2014, down 6% – due mainly to fewer fishing boats, following a busy year in 2013 – with the overall tonnage down 7% to 12.2 million gross tonnes compared to 2013 when shipments of rock to cover an offshore pipeline boosted figures.

A record tonnage of vessels was handled by the Authority’s pilots – 10.5 million gross tonnes, up 3.8%, reflecting the larger vessels using the port, although the number of piloted movements were down 5.6% at 1,418.

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