Page 12 - EurOil Week 28 2022

EurOil POLICY EurOil

EU drafts plans to cut gas demand ahead of winter

EU THE European Commission is drafting plans document. “Rather, a number of signals, includ-
to help EU member states curb their fossil fuel ing the latest decision to reduce further supply to
The commission demand, potentially curtailing consumption, Italy, point to a likely deterioration of gas supply
predicts that Russian given “a likely deterioration of gas supply out- outlook.”
reductions in gas supply look, according to a leaked document seen by The document, entitled “Save gas for a safe
will continue. EURACTIV. winter,” stresses that the EU needs to prepare for
Russia has cut off supply to a number of Euro- a “sizeable risk” that Russia will halt gas supply
pean gas customers in recent months, and also completely.
cut flow via the Nord Stream pipeline prior to When it comes to gas supply, EU regulation
its closure for 10 days of routine maintenance defines three national crisis levels: “Early warn-
on July 21, citing technical difficulties relating to ing,” “alert” and “emergency.” The bloc is already
Siemens’ failure to return turbines that had been at the early warning phase, but the document
sent off for repair, because of sanctions. After a states that it will move to the alert stage on July
sanctions exemption was issued by Canada, the 20, which will mean “there is concrete, serious
turbine is due to be returned, but likely not until and reliable information that an event likely to
early August. result in significant deterioration of the gas sup-
Over the past few months, Russia has reduced ply situation may occur and is likely to lead to
gas supplies to Europe in a “deliberate attempt the emergency level being triggered in several
to use energy as a political weapon,” causing member states.”
already very high gas prices to soar even higher, This situation requires that measures be taken
and raising concerns about whether the EU will to cut gas demand, including daily monitoring
have enough gas in storage to get through win- and information, steps to curb industrial con-
ter. Germany’s Uniper was forced this week to tap sumption, there is a switch from gas to other
into its strategic gas reserves after receiving less fuels, such as coal and nuclear, and public build-
Russian gas – a very rare occurrence in summer. ings are obligated to limit heating to between 19
“There is no reason to believe this pattern degrees Celsius and 25 degrees Celsius, unless
will change,” the Commission said in the policy not technically feasible. ™

PROJECTS & COMPANIES

Norway clears Shell investment

in Ormen Lange

NORWAY NORWEGIAN authorities have cleared a close to the field’s wellheads, enabling an increase
planned investment by Shell and its partners at in flow from the reservoirs into the wells. Its pro-
The project will result in the Ormen Lange gas field, expected to increase jected cost is NOK11.8bn ($1.2bn).
the recovery of an extra gas extraction by up to 40 bcm, helping allevi- “This project is another proof of how far you
40 bcm of gas over the ate shortages on the European market over the get with high competence and innovation,” Aas-
field’s lifespan. longer term. land said. “The innovative seabed compression
Shell filed its plan for the expansion phase at that will now be used is a first-class technology
Ormen Lange in September last year, with the pro- project that there is reason to be proud of.”
ject involving the construction of gas compression The subsea systems for the project will be
infrastructure, to recover an extra 40 bcm of gas manufactured and installed by OneSubsea, and
over the field’s lifespan. That plan was approved by Hitachi Energy has started testing what is touted
Norway’s petroleum ministry on July 8. as the world’s most powerful 25-MVA subsea
“This project will increase recovery from the transformer for the development.
Ormen Lange field from 75 to 85%, at the same Norwegian authorities have also greenlit the
time gas production from the field is acceler- development of the ConocoPhillips-operated
ated,” Norwegian petroleum minister Terje Aas- gas deposit Tommeliten A, and the Aker BP-run
land said in a statement. “This project helps to Frosk oil discovery, both situated in the Norwe-
maintain gas supply from Norway to our fields in gian North Sea. Tommeliten A is due up and
Europe from the middle of this decade.” running in 2024 and will target some 21 mcm of
The project’s projected start-up is in 2025. It hydrocarbons, of which 75% is natural gas. Frosk
will involve the installation of a wet gas compres- holds 1.5 mcm of oil and gas, most of which is oil,
sor system on the seabed, at a 900-metre depth and is due on stream in 2023. ™

P12 www. NEWSBASE .com Week 28 15•July•2022