BP announces significant NSea investment to boost UK gas supplies
Tue, 26 June 2007
BP HAS announced plans for a significant investment in its southern North Sea business which is intended to lead to an increase in recoverable gas reserves and create opportunities for further development offshore. The Dimlington Onshore Compression & Terminals Integration project will see around $250 million invested in new gas-compression facilities at the BP-operated terminal which receives gas from fields in the southern North Sea. This new equipment will reduce pipeline pressure between the offshore fields and the terminal, allowing the gas fields to increase production.
BP expects remaining recoverable reserves in West Sole and Amethyst fields to increase by around 30% as a result of this project.
The new plant will replace the existing facilities at the adjacent and unmanned Easington Terminal, allowing this terminal to be closed and decommissioned. Easington – the landing point for the first NSea gas from West Sole, in 1967 – currently receives gas from the West Sole, Hyde, Newsham, and Hoton fields, and transmits it onwards to neighbouring Dimlington. Commenting on the project Dave Blackwood, director of BP's North Sea business, said, "At a time when developing new gas resources in the UK is a great challenge, with low gas prices and rising development costs, this innovative project will make a valuable contribution to boosting indigenous gas reserves, sustaining production and extending the life of existing UKCS infrastructure." It is expected that the new configuration of the Dimlington Terminal will also prove attractive to other companies wishing to import gas through the terminal, maximizing the potential of existing North Sea infrastructure.
A planning application has been submitted and BP intends to consult widely with local community groups and other interested parties. If approved, it is envisaged that the compression facilities will be in operation by early 2009 at the latest.