Gas plant on Scots isle set to mark new era of trade

Published on Friday 21 May 2010 23:15

A NEW era in the history of Scotland's oil and gas industry began yesterday with the start of construction on a major project to open up fields in the Atlantic.

Scotland Office minister David Mundell performed a peat-cutting ceremony to mark the start of work on a gas processing terminal on Shetland, which will help unlock the potential of billions of pounds in unrecovered oil and gas reserves to the west.

Total's 500 million gas plant, next to the giant oil terminal at Sullom Voe, will initially be used to process gas from the company's Laggan and Tormore gasfields, 90 miles north-west of Shetland.

The fields, being developed at a total cost of 2.5 billion by the French oil giant, have estimated combined reserves of one trillion cubic metres of gas.

Mr Mundell welcomed the start of construction on the new gas processing plant – the biggest energy related development on Shetland since the oil terminal at Sullom Voe came on stream in 1978.

He said: "I am delighted to be in Shetland to mark an essential step forward for the UK's energy security.

"With one-fifth of the UK's remaining gas reserves, the west of Shetland fields will play a significant role in meeting our energy needs, as well as providing jobs in the local economy and beyond.

"Scotland has the skills and technology needed to make the most of our natural resources and I wish Total and Shetland the best of luck in the new project."

Roland Festor, the managing director of Total Exploration and Production for the UK, said: "After what seems like a very long journey to reach this stage, we are delighted that construction work has now started."