Shell sanctions Ormen Lange subsea compression project

Sept. 21, 2021
The project is designed to unlock an additional 30-50 bcm of natural gas.

Offshore staff

STAVANGER, Norway A/S Norske Shell and its partners have taken a final investment decision on a wet gas subsea compression project at the deepwater Ormen Lange gas/condensate field in the Norwegian Sea.

They have submitted a plan for development and operation to the Ministry of Petroleum and Energy.

The project is designed to unlock an additional 30-50 bcm of natural gas, increasing Ormen Lange’s overall gas recovery rate from 75 to 85%. The gas is exported through Langeled, a 1,200-km (746-mi) pipeline from Nyhamna to Easington, UK, and linked to the Norwegian gas export system to continental Europe.

A wet gas compressor system will be installed on the seabed at 900 m (2,953 ft) depth close to the wellheads, increasing gas flow from the reservoir into the wells. The 120-km (75-mi) distance from the onshore processing and export facility at Nyhamna to the installations sets a new world record for subsea compression power step-out, the company claimed.

Marianne Olsnes, Managing Director at A/S Norske Shell, said: “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 Norske Shell, Norwegian project content is estimated at 78%.

In 2019, OneSubsea was awarded the frame agreement for an Ormen Lange subsea multiphase compression system.

OneSubsea has contracted Subsea 7 to engineer, procure, construct, and install the subsea flowline system as well as install the multiphase compression system. This will be executed as a Subsea Integration Alliance project. 

Shell operates the Ormen Lange field and holds 17.8% interest. The partners are Petoro (36.4%), Equinor (25.3%), INEOS (14%) and Vår Energi (6.3%).