News / Total sells pipeline/terminal
THE FRENCH oil multinational behind the Shetland Gas Plant is selling off the pipelines connecting the islands to the mainland, as well as the mainland gas terminal at St Fergus for £585 million.
On Thursday Total announced plans to sell the 225 mile long Frigg UK (FUKA) pipeline that transports 20 gas fields in the northern North Sea to St Fergus.
They are also selling the 150 mile long Shetland Island Regional Gas Export system (SIRGE) that will feed gas from the new gas plant once it starts producing into FUKA. Total owns all of FUKA and St Fergus, and two thirds of SIRGE.
The company explained that it was selling off its “midstream” operations, concentrating on exploration and production, with other sales taking place across the globe.
Total said that when the Shetland Gas Plant starts taking gas from the Laggan-Tormore field at the end of this year they will be the largest oil and gas producing company in the UK.
The company is working on raising £15 billion over the next two years to make up for the drop in oil prices.
Last month they announced the £565 million sale of a 20 per cent stake in the gas plant and the Laggan, Tormore, Edradour and Glenlivet fields west of Shetland to the power company Scottish and Southern Energy.
Construction firm Petrofac this week announced an additional £30 million loss on the gas plant project in addition to the £140 million it had already lost £800 million development.
This week two of the ships being used as accommodation vessels left Shetland, as the workforce downsizes ahead of commissioning the plant in the last three months of this year.
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