Statoil to Start Arctic LNG Production This Week
Date: 19-Sep-07
Country: NORWAY
Author: Wojciech Moskwa
"We hope to be on stream, with LNG produced to tanks, by the
weekend," Statoil spokesman Sverre Kojedal said.
The first LNG tanker to take gas from the field, the
290-metre long Arctic Princess, early on Tuesday docked at the
plant, located on the Melkoeya Island off Norway's northern tip.
Statoil said it was still unclear whether the first LNG
shipment of 145,000 tonnes would go to Spain or the United
States -- the main markets for Snoehvit gas.
The timing of the first tanker leaving Melkoeya was also not
yet certain due to the complicated start-up process of the
liquefying part of the giant onshore plant.
Gas from the Snoehvit field, located 150 kilometres
offshore, has been flowing in test production for several weeks,
yielding spectacular 100-metre high flames from a flare tower
that will normally only be used as a safety valve.
To cut down on emissions and gain fuel for the plant's 230
megawatt power plant, Statoil imported LNG from Egypt for most
of the commissioning work at Melkoeya, Kojedal said.
He said that after ramp-up, Snoehvit will produce around 5.7
million standard cubic metres of LNG per year.
Snoehvit's recoverable reserves are seen at 193 billion
cubic metres of natural gas, 113 million barrels of condensate
and 5.1 million tonnes of natural gas liquids, making it one of
the five biggest fields off Norway.
Statoil holds 33.53 percent of the licence and runs the
project. Norwegian state-owned Petoro has 30 percent, France's
Total 18.4, Gaz de France 12 percent, US oil company Hess 3.26
percent and Germany's RWE Dea has 2.81 percent.
Statoil, Petoro, Hess and RWE Dea will jointly sell their
share of the LNG -- about 4 billion scm per year -- to either
the Cove Point terminal in Maryland on the US's Atlantic coast
or to Spain.
The French partners will be responsible for exporting their
own share of the LNG.
Snoehvit is also Europe's first LNG export facility and the
first offshore development in the hydrocarbon-rich but remote
Barents Sea.
"This region will be an oil and gas province of the future,"
said Kojedal, adding that several prospects around Snoehvit --
such as the Goliat or Nucula discoveries -- also showed promise.
Further east in the Russian part of the Barents Sea lies the
giant Shtokman gas field, which will require similar technology
to Snoehvit to exploit.
Shtokman owner, Kremlin-run Gazprom, has picked Total to
help it run a company to develop the field and is reportedly
looking for more partners, such as Statoil.
