BP to postpone £500m Shetland gas plant

BP to postpone £500m Shetland gas plant

BP (LSE:BP) announced it will put the £500 million gas “sweetening” plant at Sullom Voe oil terminal in Shetland, Scotland on hold.

The company now plans on using current on-site and offshore equipment to manage gas from the west of Shetland.

The plant was awarded planning permission two years ago and was arranged to be constructed over the next three years.

It would have employed around 300 workers and provided 30 full-time jobs. BP presently has 20 people working at the plant and many face losing their jobs.

Local contractors intend on finishing the preparation work by the end of April.

Andrea Manson, Shetland councillor stated, “I am really disappointed but not surprised because I think with the current price of oil they (BP) are looking to make savings wherever they possibly can, so maybe the gas sweetening plant has been a casualty of that.”

The Clair ridge field in the west of Shetland is presumed to become accessible next year, doubling the amount of oil provided to the Shetland terminal.