Norway-UK Gas Agreement Secures UK Jobs

Shell U.K. Limited (Shell) and Esso Exploration and Production U.K. Limited (ExxonMobil) have signed landmark agreements with Statoil ASA, AS Norske Shell and Esso Exploration and Production Norge AS, for the export of Norwegian wet gas (rich in natural gas liquids), to the United Kingdom. The deals, which are subject to the Statfjord Partners sanctioning the redevelopment of the field are expected to begin in 2007. They will last more than 10 years, help to secure Britain's future supply of gas and prolong the life of existing infrastructure.

The deal should help secure more than 450 jobs at Mossmorran in Fife and 120 jobs at St Fergus

Wet gas contains not only dry gas suitable to power homes and business, but also natural gas liquids, which are essential feedstock for the chemicals industry.

Gas from Norway's Statfjord reservoir will be transported across the median line to the Shell and ExxonMobil owned Far North Liquids and Associated Gas (FLAGS) pipeline. The gas will be landed at the St Fergus Gas Terminal where it will be processed to extract natural gas liquids and to produce sales quality dry gas that will enter the UK's National Transmission System. The natural gas liquids will be transported to Fife NGL plant with liquified petroleum gas (LPG) subsequently exported via the Braefoot Bay Marine Terminal. Some product will be transferred to the ExxonMobil Chemical Limited operated Fife Ethylene Plant thereby providing feedstock to the UK and European chemicals industry.

In addition to being the most attractive option for the Statfjord owners, the transportation route established is expected to be an economic option for further imports of natural gas from Norway to the UK. Extending the life of existing infrastructure will also help support the commercialisation of remaining reserves in the UK Continental Shelf.

Added to site on 3/10/03

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