The Thames gas pipeline will offer the proposed export route for IOG’s properties in the Southern North Sea. It will enable the Blythe and Vulcan Satellite hubs to supply gas to the Bacton gas terminal.
With an initial capacity of 300 million cubic feet per day (MMcfd), the 24-inch Thames pipeline will be completely owned by IOG, allowing the firm to operate the pipeline from field to market.
After the start of operations, IOG plans to supply gas from its Blythe and Vulcan Satellite hubs, which need an estimated maximum throughput of about 150 MMcfd.
Upon completion of the deal, IOG will carry out an intelligent pigging inspection to protect pipeline’s integrity for safe re-use.
IOG is also planning to purchase the onshore reception facilities at the Perenco Bacton terminal.
IOG CEO and interim chairman Mark Routh said: “We acquired most of our SNS gas portfolio at low cost because the assets in this area were considered stranded without a viable export route.
“This acquisition allays those concerns and is therefore of great importance to IOG as we now have a route to market for our gas.
“Subject to completion and remediation it will enable us to deliver up to half a trillion cubic feet of gas resources to the UK market over a period of fifteen to twenty years from the end of next year.”
With established assets in the UK North Sea, IOG is planning to deliver near term development and production assets in North West Europe.
