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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. Production has begun at a new offshore gas plant will bring the vast reserves west of Shetland to the mainland.
A gas plant in Shetland has been fired up by Total, capable of supplying energy to up to two million homes. The new Shetland Gas Plant is said by operator Total to be capable of supplying energy 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 gas started flowing to the plant from the Laggan and Tormore fields, 125km north west of Shetland.
The island plant has been the biggest construction project in the UK since the London Olympics. The gas plant is said to have 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. Almost one fifth of the UK's remaining oil and gas reserves are thought to lie in the area to the west of Shetland.
Total said the Laggan and Tormore fields will produce 90,000 barrels of oil equivalent per day. Challenging weather
Total said the Laggan and Tormore fields will produce 90,000 barrels of oil equivalent per day, which will be piped back to the gas plant which lies just to the east of the existing Sullom Voe Terminal.
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.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." Arnaud Breuillac, president of exploration and production at Total, said: "The innovative subsea-to-shore development concept, the first of its kind in the United Kingdom, has no offshore surface infrastructure and benefits from both improved safety performance and lower costs.
"By opening up this new production hub in the deep offshore waters of the west of Shetland, Total is also boosting the United Kingdom's production capacity and Europe's energy security."
Peat bog
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.
The announcement comes at a difficult time for the North Sea oil and gas industry, with industry leaders estimating that 65,000 jobs have been lost since 2014.
Shetland MSP Tavish Scott said Total's announcement showed that the prospects for west of Shetland looked positive despite the "doom and gloom from some about the future of oil and gas".
AnalysisAnalysis
By Douglas Fraser, BBC Scotland's business and economy editorBy 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.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.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.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".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.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.The weather is blustery and unpredictable in these northern waters, but this second wind may be short lived.
Read more from DouglasRead more from Douglas