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Total turns on gas from West of Shetland Laggan and Tormore fields | Total turns on gas from West of Shetland Laggan and Tormore fields |
(35 minutes later) | |
The first gas has begun flowing to the mainland from vast reserves west of Shetland. | The first gas has begun flowing to the mainland from vast reserves west of Shetland. |
A gas plant in Shetland has been fired up by Total, capable of supplying energy to up to two million homes. | A gas plant in Shetland has been fired up by Total, capable of supplying energy to up to two million homes. |
A flare was lit at the moment that gas started flowing from the Laggan and Tormore fields, 125km north west of the Shetland. | A flare was lit at the moment that gas started flowing from the Laggan and Tormore fields, 125km north west of the Shetland. |
The island plant has been the biggest construction project in the UK since the London Olympics. | The island plant has been the biggest construction project in the UK since the London Olympics. |
West of Shetland contains almost one fifth of the UK's remaining oil and gas reserves. | West of Shetland contains almost one fifth of the UK's remaining oil and gas reserves. |
Total said the Laggan and Tormore fields will produce 90,000 barrels of oil equivalent per day. | Total said the Laggan and Tormore fields will produce 90,000 barrels of oil equivalent per day. |
From Shetland, a pipeline takes the gas back to the UK mainland and into the national gas grid. | From Shetland, a pipeline takes the gas back to the UK mainland and into the national gas grid. |
Deep waters | |
It is expected to provide about 8% of the UK's gas needs, supplying more than two million homes. | |
The project is part of a massive £3.5bn investment by French company Total. Challenging weather conditions delayed the project by more than a year and added millions to its cost. | The project is part of a massive £3.5bn investment by French company Total. Challenging weather conditions delayed the project by more than a year and added millions to its cost. |
The Laggan and Tormore fields are on the edge of the UK continental shelf, where water depths descend rapidly from an average of 120m to 600m and beyond. | The Laggan and Tormore fields are on the edge of the UK continental shelf, where water depths descend rapidly from an average of 120m to 600m and beyond. |
Total said: "It's a uniquely challenging environment in which to operate, but also one with great potential." | Total said: "It's a uniquely challenging environment in which to operate, but also one with great potential." |
The Shetland Gas Plant construction phase was estimated to have involved up to 800 jobs, with 70 full time posts in plant operation. | The Shetland Gas Plant construction phase was estimated to have involved up to 800 jobs, with 70 full time posts in plant operation. |
It has been built on a peat bog next to the Sullom Voe oil terminal. | It has been built on a peat bog next to the Sullom Voe oil terminal. |
As well as the onshore construction, there was a major programme of subsea infrastructure and pipelines. | As well as the onshore construction, there was a major programme of subsea infrastructure and pipelines. |
Analysis | |
By Douglas Fraser, BBC Scotland's business and economy editor | |
There's a second wind to Britain's oil and gas industry. And it's been in the pipeline for years. | |
Getting to "first gas" from the Laggan field has taken a long time. The Laggan field was discovered 30 years ago. Nearby Tormore, scheduled to come on stream later this year, was found nine years ago. | |
Will Total make a return on its investment at current gas prices? "We can, but it requires extremely good performance in production, and to be extremely strict on cost," says the company's UK managing director, Elisabeth Proust, | |
Those high costs are a big issue for investing in British waters, but she says this remains an attractive country because it has established working practices and a reliable, skilled supply chain. Plus, she says, "there is still prospectivity". | |
Indeed, there could still be very large oil and gas fields. But very low exploration activity recently, and even more its low success rate, mean that depleting reserves in old fields are nowhere close to being replaced. | |
The weather is blustery and unpredictable in these northern waters, but this second wind may be short lived. |