Chemical industry to benefit from UK-Norway feedstock pipeline

London - Shell UK Ltd and Esso Exploration and Production UK Ltd have completed a new pipeline link between the Norwegian and UK gas pipelines networks. The pipeline is delivering wet gas feedstock for the UK chemicals industry, from the StatoilHydro-operated Statfjord field.

The pipeline will secure an important future supply of gas for the UK and prolong the life of existing processing infrastructure, said a UK government statement. Wet gas contains both natural dry gas used to power homes and business and natural gas liquids, which are used as feedstock for the chemicals industry.

The gas is exported from Norway’s Statfjord platforms across the median line to the Shell- and ExxonMobil-owned Far North Liquids and Associated Gas (FLAGS) pipeline, which has a capacity of 33mcm/day, then landed at the Shell-operated St Fergus Gas Terminal. There it is processed to extract natural gas liquids and to produce sales quality dry gas for the UK’s National Transmission System.

The natural gas liquids are then transported to Fife NGL plant with liquefied petroleum gas (LPG) subsequently exported via the Braefoot Bay Marine Terminal. Some product is transferred to the ExxonMobil Chemical-operated Fife Ethylene Plant thereby providing feedstock to the UK and European chemicals industry.

Tom Botts, executive vice president of Shell Exploration and Production activities in Europe, said: "The arrival of wet gas from Norway into Britain is a landmark in the history of the UK oil and gas industry. The strong partnership with Norway and the opportunities to create value from existing assets shows why the North Sea is still a good place for Shell to do business."

Robert Olsen, chairman and production director of ExxonMobil International, said the development provides "a cost-effective solution for transporting gas reserves to market by utilising existing infrastructure. It also provides key feedstock supplies to the UK and European chemicals industry. We look forward to participating in future cross - border opportunities."