Ineos takes FID on Danish gas field
UK energy group Ineos has taken a final investment decision (FID) on developing the Solsort West oil and gas field in the Danish North Sea, estimating that the project will cover up to 10% of Denmark's gas demand once it is up and running in the fourth quarter of 2023.
The field's sanctioning comes as Europe scrambles for additional sources of gas supply following steep cuts in Russian deliveries. Denmark had its Russian supply cut off at the end of May, and the restart of the country's biggest gas field, Tyra, following renovation, has seen repeated delays because of supply chain issues, and is currently not expected online until October next year.
Denmark consumed 2.3bn m3 of gas in 2021, but produced only 1.3bn m3. Prior to Tyra's closure in 2019, the country had been a net exporter of gas.
Ineos is partnered at Solsort West with Danoil and Nordsofonden. The project will involve drilling two wells that will be connected to the Ineos-operated Syd Arne installation.
"The sanction of the development of Solsort fits well with our overall investment strategy in Denmark of optimising already existing infrastructure to support security of supply and at the same time investing into storage of CO2 to support the green transition," Ineos Energy CEO David Bucknall said in a statement. "There will be a need for oil and gas for many years to come but at the same time we need to find new and green solutions. Ineos has the ambition to provide both."
Denmark's exploration prospects are very limited as its parliament agreed in December 2020 to cancel future licensing rounds for oil and gas, in line with its climate commitments.