A proposed new £500 million gas sweetening plant at Sullom Voe Terminal has been pulled by BP, The Shetland Times can exclusively reveal.
The project would have brought three years’ work for about 500 workers, with 33 full-time posts when fully operational.
However, the oil giant confirmed this week that the project “will now not proceed”. BP spokeswoman Stephanie Millar said the firm remained supportive of Sullom Voe Terminal.
“We remain committed to ensuring that Sullom Voe Terminal has the necessary facilities to reliably support long-term oil and gas production from fields to the west and east of Shetland,” she said. “Ensuring reliable and ‘fit for purpose’ gas sweetening capability is an important element of this.”
But due to the business climate and “revised west of Shetland sour gas production modelling work” project partners have decided there is a more cost-effective solution than the new plant.
I’m disappointed in the short term because the construction work that Shetland could have done with will not be happening. ALASTAIR COOPER
“Consequently the revised SVGS [Sullom Voe gas sweetening] project will focus on enhancing (and potentially expanding) the gas sweetening capability of the existing plant at SVT and maintaining the existing offshore sour gas ‘scavenging’ capability on Clair and Schiehallion,” Ms Millar said.
Shetland North councillor Alastair Cooper said the loss of the new plant was “a significant blow to the local economy”.
“I’m disappointed because of the jobs that the gas sweetening would have created, and I’m disappointed in the short term because the construction work that Shetland could have done with will not be happening.”
Mr Cooper agreed the effects would be more widespread – affecting accommodation and harbour traffic, with equipment no longer needed for the construction.
• For the full story, see today’s Shetland Times.