Global E&C has secured a new contract to engineer and build components for a new stabilisation facility at EnQuest’s Sullom Voe Terminal on the Shetland Islands.
The multi-million-pound award will see the North Sea contractor deliver a range of services covering engineering, manufacturing and delivery of modular localised equipment rooms to support the terminal’s new stabilisation facility.
Stabilisation involves using temperature and pressure to remove lighter hydrocarbons from oil and/or gas, enabling the commodities to be stored safely and for longer periods.
EnQuest (LON: ENQ) took over as operator of the terminal and the Magnus pipeline system in December 2017, but is now embarking on a major overhaul of the 1,000 acre site.
This will see it “right-size” oil and gas infrastructure and connect the facilities to the grid next year, amid wider plans for a clean energy hub spanning carbon capture storage (CCS), hydrogen production and LNG.
Explaining the rationale for the project last year, EnQuest’s managing director for new energies Salman Malik – who is now in charge of its newly created Veri Energy arm – said: “We are down to 100,000 barrels or less; the stabilisation unit that we have is for 400,000 barrels a day, and we only need 25,000 to 30,000 barrels a day.
The new stabilisation unit includes gas export, and is due to come online “at the end of 2024 or early 2025” he said.
The company says work on the stabilisation facilities will see the existing process area and surge tanks retired, freeing up a large area that could be re-purposed for these new energy opportunities.
Global E&C said it expects more than 50 personnel in Aberdeen to be engaged in executing the contract.
© Supplied by NexosCEO Terry Allan added: “We’re delighted with this award which solidifies our position in onshore modularisation projects across multi-energy markets. We’re proud to continue our long-established relationship with the terminal operator, EnQuest.”
Katy Heidenreich, OEUK’s supply chain and people director, said: “This is a great example of how our members are voluntarily aiming for the target of 50% local UK content, including capital investment, over the lifecycle of low-carbon projects.
“This is one of five key commitments in the North Sea Transition Deal and it’s good to hear that a UK-based company will be manufacturing equipment locally in Aberdeen to help achieve the long-term objective of preparing Sullom Voe terminal for the low carbon energies of the future.”
Meanwhile, construction of a new pipeline is also underway at the terminal.
BP announced last year its decision to invest in the new link, creating an additional export route for gas from the Clair field and potential future west of Shetland developments.
The pipeline will connect the existing gas sweetening facilities at the Sullom Voe terminal on Shetland with the SIRGE pipeline.
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