Opening up a new era of opportunity for SSE
I was delighted to take part in the inauguration of the Laggan and Tormore gas production fields and the new gas processing plant in Shetland today (May 16th). The Secretary of State for Energy and Climate Change, Amber Rudd, was there along with representatives of our partners Total (60%, operators) and Dong Energy (20%).
We announced in July last year that we had taken the long-term strategic decision to acquire a 20% share of the four gas fields making up the Greater Laggan area 125km north-west of Shetland and the new gas plant built on the island used to process the gas before transportation on to the UK mainland. Production commenced in February this year and it was great to see first-hand the fully operational plant today.
This is one of the most important infrastructure projects in the UK. Although the Laggan field was discovered in 1986 it has taken until this year to become operational as it needed both the discovery of other fields in the same area and advancements in technology to make the project economically viable.
The overall project involves complex engineering challenges with wells in up to 600m of water and a tie-back pipeline of 143km which links the field back to land using an innovative subsea-to-shore concept. This concept eliminates the need for personnel to be based offshore which has significant safety advantages.
We look forward to contributing our own operational experience and working with our partners to ensure that the Edradour and Glenlivet fields come onstream in 2017 and 2018. With a peak production of 90,000 barrels of oil equivalent per day and a life span of over 20 years, the Greater Laggan fields are a long-term asset that will not only help to meet the gas demand of SSE and its customers, but also make a significant contribution to security of gas supply in the UK. This investment demonstrates SSE’s focus on maintaining a balanced range of energy businesses across its portfolio.