|
| |
Pete Bevington
1 May, 2008
SHETLAND’S Sullom Voe oil terminal is back on the agenda for receiving new oil
and gas from west of Shetland after a senior island delegation met UK energy
minister Malcolm Wicks this week.
Northern isles MP Alistair Carmichael joined Shetland Islands Council convener
Sandy Cluness and chief executive Morgan Goodlad to stress to the minister the
importance Sullom Voe could play in handling Atlantic Frontier production.
French oil giant Total discovered gas in the Laggan field 75 miles west of
Shetland in September 2004, and have been looking into piping it ashore to
Sullom Voe ever since.
However the government’s Department for Business, Enterprise and Regulatory
Reform (DBERR) has held the development back to investigate alternative
destinations.
DBERR believe 17 per cent of the UK’s oil and gas reserves lie west of Shetland
but see the lack of infrastructure for exporting gas as a major disincentive to
further exploration and development.
They have formed a West of Shetland task force with five oil companies – BP,
Total, Chevron, ExxonMobil and DONG Energy – to see if “a collective solution
can be found to put the right infrastructure in place to facilitate development
and exploration of this area”.
DBERR are enthusiastic about building a gas pipeline direct to the UK mainland,
while Total want to go ahead with a pipeline to Shetland.
Yesterday Mr Carmichael said they had “put Shetland firmly on the minister’s
radar screen” for future developments.
The Shetland delegation told the minister that by allowing Total to pipe gas to
Sullom Voe it could open the door to receive other finds, which would be quite
affordable with the current high price of oil.
Mr Carmichael said: “As assets to the west of Shetland are developed it’s
important to have engagement with the energy minister as well as government
officials. I believe we got that and I hope that will improve Shetland’s
position as decisions are made.”
The West of Shetland task force is expected to report to Parliament in July.
|
