Report reviews options for future Barents Sea gas exports

Jan. 15, 2020
Norwegian offshore gas trunklines operator Gassco has presented a new report on gas transport options for fields in the southern Barents Sea to Norway’s Minister of Petroleum and Energy, Sylvi Listhaug.

Offshore staff

KOPERVIK, Norway – Norwegian offshore gas trunklines operator Gassco has presented a new report on gas transport options for fields in the southern Barents Sea to Norway’s Minister of Petroleum and Energy, Sylvi Listhaug.

The options include enhanced capacity for the Snøhvit LNG plant on Melkøya Island, off Hammerfest, northern Norway, and exports by LNG carrier or pipeline.

Current capacity at Melkøya LNG will be fully booked through 2050 based on volumes from fields in operation and discoveries under development, according to the Norwegian Petroleum Directorate (NPD), which supported Gassco in its assessments of the resource base for fields and discoveries, also developing separate scenarios for undiscovered resources.

Gassco CEO Frode Leversund said: “Establishing new gas infrastructure in the Barents Sea would require cooperation across production licenses, and it’s therefore important to maintain the extensive collaboration between the players in these waters.”

The analysis in the report suggest that several gas transport options could be prove profitable with proven resources alone. Including undiscovered resources, more expansive export solutions could also be economic.

“We are projecting significant remaining gas resources in the southern Barents Sea, and new infrastructure could help stimulate additional exploration,” said NPD Director General Ingrid Sølvberg.

The report also shows that simpler solutions for gas transport and technology development could help cut development and operating costs.

“An early capacity increase will facilitate more rapid development of proven gas resources, and at the same time lay the groundwork for more optimal production of oil with associated gas,” said Kjell Agnar Dragvik, NPD’s director of Analyses and Framework.

01/15/2020