Page 10 - EurOil Week 38 2021

EurOil INVESTMENT EurOil

Shell takes FID on gas compression

project off Norway

NORWAY ROYAL Dutch Shell has sanctioned the Ormen in a closed system at the Nyhamma gas plant.”
Lange subsea compression project in the Nor- Around 11.9 bcm of gas was extracted at
Equinor said the project wegian Sea, the company said on September 21. Ormen Lange, making it Norway’s second-big-
is a world first. Shell and its partners took the final invest- gest source of gas production after Troll, which
ment decision (FID) in order to develop an extra is also operated by Equinor. It delivers gas via the
30-50bn cubic metres of gas at the field, which is 1,200-km Langeled pipeline from Nyhamma to
already Norway’s biggest gas producer. The pro- Easington in the UK, from where it is dispatched
ject will boost Ormen Lange’s overall recovery to Continental Europe via the Norwegian gas
rate from 75 to 85%. export system.
A wet gas compressor system will be installed Equinor did not say how production rates
on the seabed at a depth of 900 metres near to the at Ormen Lange would be affected by the new
field’s wellheads, boosting their flow rates. The project.
120-km distance between the installation and Shell serves as operator of Ormen Lange
onshore processing facilities sets a world record with a 17.8% interest, while Petoro has 36.4%,
for compression power step-out, Equinor said. Equinor 25.3%, Ineos 13% and Var Energi 6.3%.
“We are truly proud to take FID on a project Subsea 7 also reported winning a “sizeable”
which pushes technical boundaries, helping contract by OneSubsea, a division of Schlum-
cement Norway’s position as a global subsea berger, for the engineering, procurement, con-
industry hub,” Equinor said. “Ormen Lange struction and installation (EPCI) of the subsea
ranks among the lowest-carbon intensity fields flowline system of the compression project. The
in Norway, being powered with hydro-generated contract is worth somewhere between $50mn
electricity from the national grid and processed and $100mn.™

ENERGY TRANSITION

Preem launches renewable fuel

production at Swedish refinery

SWEDEN SWEDISH oil refiner Preem has launched pro- importing 85% as we do today,” Preem said.
duction of renewable fuel using biomass-based As part of efforts to reduce the country’s
Similar moves are being pyrolysis oil as a feedstock at its 220,000 barrel fuel-related CO2 emissions by 28% by 2030,
made by refiners across per day (bpd) refinery at Lysekil in Sweden. Sweden’s statutory mixing requirements for
Europe. Preem is using a technology provided by renewables in the gasoline pool are to increase to
Honeywell UPO. Using only the refinery’s exist- 7.8%. Preem said its renewable fuel production
ing infrastructure, Preem has completed its first at Lysekil would play a critical role in helping
trial of co-processing pyrolysis oil to produce the Sweden deliver on its climate goals.
low-carbon fuel. The process also involves Opti- “Our long-term goal is to produce about 5mn
mix GF Feed Distributor technology. cubic metres per day of renewable fuels by 2030,
The pyrolysis oil is produced from sustaina- which means that we can reduce CO2 emissions
ble solid biomass materials such as sawdust and by 12.5mn tonnes per year [tpy], corresponding
residuals from agriculture. The end fuel is clas- to 20% of Sweden’s total emissions,” Preem said.
sified as sustainable under Sweden’s Integrated Preem announced last year it was planning
Energy and Climate Plan and the EU’s Renew- to convert the Lysekil refinery into Scandinavia’s
able Energy Directive. Preem aims to co-pro- biggest manufacturing site for renewable fuels.
cess up to 50,000 tonnes of pyrolysis oil over the Earlier it dropped plans for a $1.65bn expansion
course of two years. of conventional fuel production that would have
“Residual products from our Swedish fore- involved the construction of a residue oil conver-
cast have a unique potential to make Sweden’s sion complex. The approval process for the plan
self-sufficient in an increasing share of liq- had been held up by opposition from climate
uid renewable fuels in the long run instead of activists. ™

P10 www. NEWSBASE .com Week 38 23•September•2021