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Natural Gas Reserves in North Sea Region
- By Oil and Gas Author
- Published 09/4/2006
- Offshore Drilling , Oil and Natural Gas Prices , Environment and Pollution , Liquefied Natural Gas LNG , Exploration and Discoveries , Natural Gas Petroleum
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View all articles by Oil and Gas AuthorNorway has a small LNG terminal located in Tjeldbergodden, with a capacity of only 12,000 tonnes per year (t/y). In 2004, all output from this plant went to Sweden, according to Statistics Norway. On a much larger scale, Statoil plans to construct an LNG export terminal at Melkoya, near Hammerfest. The Melkoya facility, which will be the first, large-scale LNG export terminal in Europe, will consist of an anchored barge with Pipeline connections to the Snohvit project. Statoil plans to have the the project online by the end of 2006, with an initial capacity of 4.1 million t/y (202 Bcf of Natural Gas) and a potential expansion to 8.2 million t/y. Most of the output from the Melkoya facility has already been contracted to El Paso for delivery to the United States, with smaller amounts going to Iberdrola in Spain.
The UK has a single LNG import terminal, though there are several in various planning stages. NGT operates the Isle of Grain LNG terminal, a converted natural gas storage facility in southern England. The terminal has a natural gas processing capacity of 470 Mmcf/d, with plans to eventually increase capacity to 1.5 Bcf/d. The terminal received its first delivery of LNG in July 2005 from Algeria.
ExxonMobil and Qatar Petroleum have received regulatory approval for the South Hook LNG receiving terminal in Milton Haven, Wales. The terminal will be dedicated to receiving LNG from the Qatargas II liquefaction project in Ras Laffin, Qatar, which is also a joint project between the two companies. The South Hook LNG project is scheduled to come online by 2007, with an initial capacity of 1.0 Bcf/d and a maximum capacity of 2.1 Bcf/d by 2009. Finally, BG has partnered with Netherlands-based Petroplus and Malaysia-based Petronas to also build an LNG receiving terminal in Milton Haven on the site of an existing natural gas storage facility owned by Petroplus. The companies received regulatory approval from Ofgem in early 2005 for the project, called Dragon. However, the European Commission announced that it would launch an investigation into the project, because Ofgem had granted the Dragon facility a waiver from EU rules requiring that all LNG terminals be open to third-party access. If the project does attain final regulatory approval, Dragon should be completed by the end of 2007 with an initial capacity of 580 Mmcf/d.
There has been discussion concerning the construction of two LNG receiving terminals in the Netherlands, at Eemshaven and Rotterdam, though neither project has progressed beyong the initial planning stages. These LNG terminals would likely facilitate re-exports to the rest of Europe, as the Netherlands is able to meet it own consumption through domestic production. A proposed LNG terminal in Wilhelmshaven, Germany has also been considered.
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