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Gassco suggests ways to increase exports from the Barents Sea

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LNG Industry,

Gassco, the Norwegian pipeline system operator, has said that Norway should either construct a new pipeline or boost LNG production to increase exports from the Barents Sea.

The operator’s report on transporting more gas from Barents Sea South demonstrates that, by expanding today’s capacity, the basis can be put in place for further value creation from the country’s petroleum resources.

Numerous alternatives have been examined, including increased capacity from the Melkøya gas liquefaction facility, as well as exports by LNG carrier or pipeline.

Leversund, CEO of Gassco, said: “Substantial value from a socioeconomic perspective could be created by developing these gas resources.

“Establishing new gas infrastructure in the Barents Sea would require cooperation across production licences, and it’s therefore important to maintain the extensive collaboration between the players in these waters.

“The analyses in our report provide a detailed and updated factual basis for further work in this region.”

Unlike earlier studies, Gassco claims that these analyses show that several gas transport options could prove profitable with proven resources alone. Including undiscovered resources would also make larger solutions economic.

An important contribution to profitability is that natural gas transport solutions established as a consequence of oil production would facilitate optimum reservoir development and help to ensure a high and rapid socioeconomic return.

According to the statement, the report has been put together in collaboration with a number of industrial players, as well as the Norwegian Petroleum Directorate (NPD).

NPD Director General, Ingrid Sølvberg, said: “Increasing transport capacity is important for realising the value of the gas already discovered.

“New infrastructure could also contribute to a stronger drive for further exploration in the Barents Sea South area.”

Leversund added: “This report will be used as a basis for maturing projects to expand gas transport capacity from the Barents Sea.

“Together with the commercial players, we’ll now take this work forward.”

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