Centrica to operate Gassco UK gas terminal

May 16, 2005
Gassco AS, Norway's state-owned gas company, let a contract to Britain's Centrica Energy PLC to operate a planned natural gas receiving terminal at Easington in the UK. Centrica operates its own Easington gas terminal.

By OGJ editors

HOUSTON, May 16 -- Gassco AS, Norway's state-owned gas company, let a contract to Britain's Centrica Energy PLC to operate a planned natural gas receiving terminal at Easington in the UK. Centrica operates its own Easington gas terminal.

The new terminal, planned to be operational in mid-2006, originally will receive gas from Norwegian fields via a new pipeline from the Sleipner platform in the North Sea. That line, to be laid this summer, also is planned to be operational in 2006. It is the southern leg of the planned 1,160 km Langeled pipeline system, which ultimately will deliver gas to Easington from giant Ormen Lange gas and condensate field off Norway (OGJ Online, May 7, 2004).

The first section of the Langeled pipeline system will deliver gas from Ormen Lange field to a condensate separation plant at Nyhamna in central Norway. After condensate removal, gas will flow through the northern leg to the Sleipner riser platform where it will enter the southern leg to Easington.

The northern leg from Nyhamna will be laid in 2006, becoming operational in 2007 when Ormen Lang is planned to come on stream. When completed, the Langeled pipeline system will have a capacity of 25 billion cu m/year of gas.

Norsk Hydro ASA is responsible for development of Ormen Lange field and of the pipeline, which another consortium partner, Statoil ASA, is installing (OGJ Online, Nov. 24, 2004). AS Norske Shell will become production operator when the field begins producing 2.5 bcfd in October 2007. Gassco will assume responsibility for pipeline operations and deliveries.

The $9.5 billion Ormen Lange development project is the largest in Norway's history. The field lies on Block 6305/5 more than 100 km northwest of Aukra, Norway, in 3,300 ft of water. Reserves are 14 tcf of gas and 180 million bbl of condensate (OGJ Online, July 12, 2004).