Dansk Olie & Naturgas AS (DONG) and Amerada Hess AS are studying the feasibility of laying a pipeline to move gas ashore to Denmark from Danish discoveries and from the Norwegian and U.K. offshore pipeline grids.
Denmarks two existing pipelines take gas from the Tyra field complex, and are almost filled to capacity of 7.5 billion cu m/year.
Coinciding with the pipeline study, DONG has opened talks with Norways gas negotiating committee of operators to secure gas supplies for the future.
DONG expects Danish gas demand to rise to about 9.5 billion cu m/year by the turn of the century, leaving a shortfall that will require imports or new gas developments.
An Amerada Hess official said the companies want to commission a new pipeline by late 1998. It will need large volumes of gas from Norway or U.K. to make it viable.
Although details of the line are not firm, it is expected to be rated at 4 billion cu m/year. Capital outlay is expected to be 1.5-2.5 billion Danish kroner ($260-430 million).
The intended route for the line is from the area of the South Arne discovery to a point near the existing pipelines landfall north of Esbjerg.
Amerada Hess drilled the South Arne strike last year on a license it bought from Norsk Hydro AS. A preliminary estimate pegs South Arne reserves at 50 million bbl of oil plus associated gas. Amerada Hess is studying a number of development plans for South Arne, including floaters and fixed platforms.
Statoil strike
Toward the end of last year, Norways Den norske stats oljeselskap AS tested the largest oil discovery off Denmark since 1977 at its 1 Siri wildcat in Block 5604/20 (OGJ, Jan. 1, p. 31).
Statoils strike, 50-60 km from South Arne, is thought to hold reserves of 150 million bbl of oil plus associated gas.
The company is studying a floater development of Siri, with first oil anticipated by 1998.
Amerada Hess said the planned pipeline would be able to gather gas from South Arne and other small fields nearby.
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