16 May Total’s Shetland Gas Plant officially opens
Oil and gas major Total (LSE:TTA) announced the opening of its US$5 billion Shetland Gas Plant yesterday with peak production anticipated to be 500 million cubic feet of gas per day, the equivalent of 90,000 barrels of oil.
The gas development plant is located west of the Shetland Islands and is expected to boost the North Sea industry.
It was delayed by more than a year due to weather conditions. Due to the weak oil price, it is estimated that more than 65,000 indirect service jobs have been cut.
Throughout its previous construction peak the project employed more than 2,500 workers and now there will be just 80 permanent jobs on the site.
Total estimates the plant will generate around 8 per cent of the UK’s gas supply, capable of producing energy to two million homes.
The plant processes gas from Laggan-Tormore, two of the biggest deepwater fields in the North Sea, more than 77 miles from the UK mainland.
“The Laggan-Tormore development demonstrates Total’s continued commitment to the United Kingdom,” said Patrick Pouyanne, chairman of Total. “By opening up its third production hub in the frontier deep offshore waters of the West of Shetland, Total is also improving the United Kingdom’s long-term energy security.”
Total will partner with DONG Energy and Scottish energy company SSE (LSE:SSE).