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Shell: Ormen Lange gas output reduced due to reduced power at Onshore gas plant

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BY KJETIL MALKENES HOVLAND

OSLO — Royal Dutch Shell said that gas flows from the giant Ormen Lange field offshore Norway have been reduced following a grid failure affecting an onshore gas processing plant.

Gas flows from the Nyhamna gas processing terminal, whic processes gas from the Ormen Lange field mainly for export to the U.K., was reduced by 53 MMcm, according to Gassco. Output is expected to be reduced by 37 MMcm, it said.

The terminal on Norway’s west coast has a maximum production capacity of about 70 MMcmpd, said a Shell spokeswoman. The maximum production at Ormen Lange is equal to about 20% of the U.K.’s natural gas consumption,

according to Shell. The gas is processed onshore at Nyhamna and exported to the U.K. through the 1,200 km long Langeled pipeline.

The Nyhamna terminal lost power due to a failure in the national grid, likely caused by rough weather. It is now operating below full power. “They have a supply of 50 mw,” said Gunnar Romsaas, a spokesman at Statnett. At full capacity, the terminal consumes up to 170 mw of power.

Statnett said it doesn’t know yet when the fault on the grid will be fully repaired. They are waiting for the weather in the area to ease. “We have a helicopter standby, waiting to fly into the area to identify the fault,” said Mr. Romsaas. “There’s been a lot of rainfall, strong winds and now also fog.”

Ormen Lange is operated by Shell, which owns about 17%, Exxon Mobil has a stake of about 7.2%, DONG Energy owns 10.3%, Statoil holds 28.9% and Petoro has a stake of about 36.5%.

Dow Jones Newswires

03/04/2013

SOURCE

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