North Sea operators have unveiled plans for two more big gas pipeline projects.
Amoco (U.K.) Exploration Co. will spend l billion ($1.68 billion) to develop Everest and Lomond gas fields in the central graben area of the U.K. sector and lay a 254 mile, 36 in. pipeline to Teesside in Northeast England. Start-up of the pipeline, designated the Central Area Transmission System (CATS), is scheduled for 1993.
The line at first will supply as much as 300 MMcfd to a cogeneration plant, billed as the world's biggest, planned at Teesside by Enron Corp. and ICI Chemical & Polymers Ltd.
In addition, Norway's Den norkse stats oljeselskap AS and the Dutch gas company Gasunie plan a third gas pipeline from the Norwegian North Sea to continental Europe.
The 280 mile, 36 in. line, to cost $763-916 million, is to be operational in 1994-96.
The line is required to meet increased demand for gas in West Germany.
AMOCO PROJECT
Amoco and its Everest-Lomond partners signed a letter of intent covering a long term gas supply and transportation arrangement with Enron and ICI, which plan to build a 1.75 million kw, $1 billion, cogeneration plant at ICI's Wilton works near Redcar, Teesside.
Amoco's partners in the field development and pipeline are Gas Council (Exploration) Ltd., Amerada Hess Ltd., and North Sea Inc.
ICI will buy the plant's steam and electrical power for its chemical manufacturing operations. Surplus power will be sold into the U.K. electricity market.
The agreement will provide enough throughput to start up CATS, which is to have a peak capacity of 1.4 bcfd. Amoco is negotiating with other North Sea producers to fill the line.
Government approval for field development and the pipeline will be sought almost immediately. An early start on the projects is expected to meet the tight 1993 timetable.
The project calls for two platforms in Everest field, one ready for start-up of the system and a second one later. Lomond will be developed with a single platform.
Amoco is negotiating to transport liquids from the fields through existing pipelines.
Everest lies mainly in U.K. Blocks 22/9 and 22/10a with an extension into Block 22/14a. Lomond is in Block 23/21. Both are in about 300 ft of water.
Amoco originally considered building the CATS line to a terminal in Scotland but chose the longer route to Teesside to meet demands of its customer.
GAS COMPETITION
CATS is the latest in a long list of projects stimulated by government efforts to induce competition in the U.K. gas market and the proposed privatization of the state owned electrical power industry.
As part of this process, BP Exploration has created a new subsidiary, BP Gas Marketing Ltd., which will be responsible for direct sale of gas to industrial and power generation customers.
BP Exploration also reached agreement with British Gas plc on terms to transport gas to potential customers through BG's existing high pressure transmission system.
BP hopes to expand gas sales to industrial and power markets through access to new field developments and gas purchases.
STATOIL SYSTEM
Statoil said a third gas pipeline to continental Europe is required to handle added volumes that will follow the decision of two customers for Troll and Sleipner gas to exercise options for additional supplies.
Sleipner gas deliveries are to start to a group of European customers in 1993, to be followed 3 years later by start-up of Troll gas field.
Ruhrgas AG and Thyssengas held three options to be exercised by 1990,1991, and 1995. All have been exercised early, which will add 141-177 bcf/year to deliveries to West Germany. That will boost Troll deliveries to West Germany by the end of the century to 424-459 bcf/year and increase Norway's share of the West German gas market to 25% from 20%.
Statoil is negotiating to add Italy's SNAM to its list of European partners. In addition, other customers have options to take extra gas.
If the Italian deal is signed and other options are exercised, Troll-Sleipner volumes could rise to 1.41 tcf/year by 2005.
Statoil is committed to laying the Zeepipe system to link Troll and Sleipner with Zeebrugge, Belgium, for start-up in 1993. Spare capacity in the existing Norpipe line from Ekofisk field to Emden, West Germany, also will be used to meet initial demand for Troll-Sleipner gas.
The Statoil-Gasunie study, due for completion by midyear, will assess the feasibility of a line from the existing Zeepipe and Statpipe system in the Ekofisk area to either Emden or Eemshaven, Netherlands.
Statoil will be responsible for the study on the Emden route, and Gasunie will look after the Eemshaven landfall. A decision on the route and a go-ahead for the project are expected by yearend.
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