Harbour Energy PLC has farmed out a 40% interest in the Viking CCS transportation and storage project to bp PLC.
The project, sited near the industrialized Humber region, has the potential to meet one third of the UK government’s target to capture and store up to 30 million tonnes/year (tpy) of CO2 by 2030.
The agreement follows the UK government’s recent decision to launch Track 2 of its CCS cluster sequencing process to establish two new clusters for further development of CCUS in the area, and recognition that the Viking CCS project is one of two transport and storage system contenders for the process, the companies said in a release Apr. 11.
Harbour and bp share an interest in the 120 km, 36-in OD Lincolnshire Offshore Gas Gathering System (LOGGS) pipeline which will be repurposed and lengthened by 20 km to connect to depleted Viking gas fields which have 300 million tonnes of CO2 storage capacity independently verified. The pipeline is expected to provide transportation capacity up to 30 million tpy.
Viking CCS also has access to a planned new CO2 shipping terminal at Associated British Ports’ Port of Immingham, with potential for shipped CO2 from dispersed emitters elsewhere in the UK and internationally to be transported for permanent storage within Viking fields (OGJ Online, Nov. 30, 2022).
Subject to the outcome of the Track 2 cluster sequencing process, a final investment decision (FID) on the Viking CCS project is expected in 2024. The project could be operational as early as 2027, potentially storing up to 10 million tpy of CO2 by 2030.
Under the terms of the agreement, Harbour continues as operator of Viking CCS with a 60% interest, with bp acquiring a 40% non-operated share.
