Shell Sanctions Ormen Lange Subsea Compression Project

September 21, 2021

Credit: Shell
Credit: Shell

Oil major Shell has with its partners in Norway taken a final investment decision (FID) on a wet gas subsea compression project at Ormen Lange, Norway’s second-biggest gas field, and submitted a Plan for Development and Operation (PDO) to the Ministry of Petroleum and Energy.

The project, located in the Norwegian Sea, is designed to unlock an additional 30-50 billion cubic meters of natural gas, increasing Ormen Lange’s overall gas recovery rate from 75 to 85%. This will be fed into the Norwegian gas export system, ensuring a continued and reliable supply to Europe, Shell said.

Shell is the operator of the project with 7.8% stake. Its partners are Petoro 36.4%, Equinor 25.3%, INEOS 14% and Vår Energi 6.3%.

A wet gas compressor system will be installed on the seabed at 900m depth close to the wellheads, increasing gas flow from the reservoir into the wells. The 120 km distance from shore to the installations sets a new world record for subsea compression power step-out.



"We are truly proud to take FID on a project which pushes technical boundaries, helping cement Norway’s position as a global subsea industry hub,” said Marianne Olsnes, Managing Director at A/S Norske Shell. “Ormen Lange ranks among the lowest carbon intensity fields in Norway, being powered with hydro-generated electricity from the national grid and processed in a closed system at the Nyhamna gas plant.”

According to Shell, Norwegian project content is estimated at 78 percent. In 2019, OneSubsea was awarded the frame agreement for an Ormen Lange subsea multiphase compression system.

"Ormen Lange Subsea Compression adds more than 40 BNOK extra income to the Norwegian State. It demonstrates how close cooperation in the industry and with the authorities combined with robust technical processes and resilience, has paved the way for a bold, yet robust project,” said Marianne Olsnes.

Ormen Lange has ben described as "a fully subsea-to-beach gas field," located 120 km from the onshore processing and export facility at Nyhamna.

The gas is exported through Langeled, a 1200 km pipeline from Nyhamna to Easington, UK, and linked to the Norwegian gas export system to continental Europe.
 Minister of Petroleum and Energy Tina Bru (right) was handed the plan for Ormen Lange Subsea compression by Marianne Olsnes, Managing Director at A/S Norske Shell. (left). Photo: Ella Ege Bye, OED



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