Investment decision for seabed compression on Ormen Lange
Wednesday 22 September 2021
A / S Norske Shell and the Ormen Lange partners have made a final investment decision on seabed compression for Norway's second largest gas field and submitted a plan for development and operation to the Ministry of Petroleum and Energy.
The project is designed to be able to produce another 30-50 billion cubic meters of natural gas from Ormen Lange. This increases the field's recovery rate from 75 to 85 percent. Ormen Lange exports its gas via Langeled to Europe and thus helps to ensure a reliable supply from Norway.
Two stations with compressors that handle rich gas will be installed on the seabed near the wellheads at 900 meters sea depth. This increases the gas flow from the reservoir into the wells. The distance between land and the seabed compressors represents a new length record for power cable for compressors under water.
- We are proud to have made an investment decision on a project that moves technical boundaries and that contributes to strengthening Norway's position as a global hub for the subsea industry, says Marianne Olsnes, CEO of A / S Norske Shell.
Ormen Lange is among the fields with the lowest carbon intensity in Norway. The field is electrified with power from the Norwegian power grid and the gas is processed in a closed system at Nyhamna gas plant.
Norwegian content in the project is estimated at 78 percent. In 2019, OneSubsea was awarded a framework agreement for multi-phase seabed compression on Ormen Lange.
- Underwater compression from Ormen Lange will contribute more than NOK 40 billion in extra revenue to the Treasury. Cooperation with industry, the market and the authorities combined with robust technical processes and a good dose of perseverance will result in a groundbreaking but robust project, says Marianne Olsnes.