Page 8 - Euroil Week 38 2019
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EurOil PERFORMANCE EurOil
Denmark closes down flagship gas field
DENMARK
Tyra accounts for more than 90% of Danish gas production.
DENMARK is set to become a net importer of gas following the shutdown this week of its larg- est gas field.
The Tyra gas field accounts for more than 90% of Danish gas production, and has for dec- ades provided the country with surplus supply for export. However, its French operator Total and partners are embarking on a lengthy revamp project that will leave the field out of action until July 1, 2022.
Tyra was due to close on September 19, Denmark’s gas and power transmission oper- ator Energinet revealed. Total confirmed to EurOil that operations had fully wound down on September 20. Its partners, Nor- way’s Noreco and Denmark’s Nordsofonden, declined to comment.
The North Sea first started producing gas in 1984 and in the years since, its platforms have subsided by more than 5 metres, according to Total’s website, requiring a redevelopment pro- gramme. The French major agreed with Dan- ish authorities in 2017 to overhaul the field’s infrastructure at cost of DKK21bn ($3.2bn), representing the largest single investment in the
Danish North Sea on record.
Once the field is relaunched, Total estimates it
will be able to recover a further 200mn (boe) and maintain production at a rate of 60,000 barrels of oil equivalent per day (boepd).
Denmark produced 85,889 TJ of gas in the first seven months of this year, according to Energinet, while it consumed only 63,170 TJ. While Tyra is offline, the operator has said Den- mark will import extra gas from Germany to meet the shortfall.
As Germany is a net gas importer, this will mean the resale of gas from other suppliers. Ger- many’s top supplier is Russia, although its other key sources are the Netherlands, the UK and, until now, Denmark.
Dutch production is also set for steep decline following the government’s recent deci- sion to bring forward the closure of the earth- quake-causing Groningen field by eight years to 2022. Gas output in Norway is also flagging, averaging 307.4mn cubic metres per day in July, down 9.8% year on year. This growing supply gap in northern Europe is likely to be filled by Rus- sian piped volumes as well as LNG.
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w w w . N E W S B A S E . c o m Week 38 26•September•2019
