Norwegian Discoveries Need New Capacity: Gassco

Norwegian gas from existing fields and discoveries in the Barents Sea will need new transport and processing capacity, the offshore pipeline operator Gassco said in a report published January 13.

A number of alternatives have been assessed, including enhanced capacity for the Melkoya gas liquefaction facility and exports by liquefied natural gas (LNG) carrier or pipeline. But this would "require co-operation across production licences, and it’s therefore important to maintain the extensive collaboration between the players in these waters,” the report says. “The analyses in our report provide a detailed and updated factual basis for further work in this region.”

Unlike earlier studies, these analyses show that several gas transport options could prove profitable with proven resources alone. Including undiscovered resources would also make larger solutions economic.

An important contribution to profitability is that natural gas transport solutions established as a consequence of oil production would facilitate optimum reservoir development and help to ensure a high and rapid socioeconomic return. The report has been drawn up in collaboration with a large number of industrial players as well as the Norwegian Petroleum Directorate (NPD).

“Increasing transport capacity is important for realising the value of the gas already discovered,” says NPD director general Ingrid Sølvberg. “New infrastructure could also contribute to a stronger drive for further exploration in the Barents Sea South area.” 

The  report will be used "as a basis for maturing projects to expand gas transport capacity from the Barents Sea,” said Gassco CEO Frode Leversund. “Together with the commercial players, we’ll now take this work forward.”