Oil major BP has confirmed it has thrown out plans for a new gas sweetening plant at Shetland’s Sullom Voe Terminal (SVT).
In April the company had revealed the plans were on hold due to the lower oil price environment currently facing the global oil and gas industry.
The plant would have employed about 300 workers in the construction phase and created around 30 full-time jobs.
A spokesman for BP said:”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.
“Ensuring reliable and ‘fit for purpose’ gas sweetening capability is an important element of this.
“Given the current business climate and as a result of revised west of Shetland sour gas production modelling work, the Sullom Voe Gas Sweetening (SVGS) partners have concluded that a more cost-effective solution to meeting future gas sweetening needs for the region is possible.
“Consequently the revised SVGS 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.”
Earlier today the company revealed it has created a new Norwegian oil and gas producer with Det Norske.