Norwegian energy company Statoil has revealed that work to construct a combined heat and power station at Mongstad near Bergen, Norway has begun. The company has also submitted a plan to yield resources from the Alve gas and condensate filed in the North Sea.

<p>Building for the combined heat and power (CHP) station project was initiated on January 16, 2007, with scheduled power-up expected in 2010. The project comprises the laying of a new gas pipeline from the Kollsnes gas processing plant near Bergen, in addition to the construction of the CHP station. Additionally, tie-in work between the CHP station and the present Mongstad refinery will take place.<br /><br />[The plant] will be strategically important as a large-scale environmental and industrial project. It will improve the power grid balance in the Bergen region. By utilizing heat from the CHP station, Statoil will in addition achieve considerably improved energy efficiency and better profitability at the Mongstad refinery, commented Bjorn Kare Viken, vice president for Statoil Mongstad.<br /><br />Danish Oil and Natural Gas (Dong) Energy will construct, own and operate the station. <br /><br />Meanwhile, Statoil has submitted a plan for development and operation of the Alve gas and condensate field in the Norwegian Sea to the Ministry of Petroleum and Energy. Spudding in is scheduled for August 1, 2007 and first gas from the field is expected in December 2008. Total investment is estimated at NOK 2.4 billion. <br /><br />A maximum gas production of around four million cubic meters per day is expected from the field. Gas reserves are estimated at 6.78 billion cubic meters and 8.3 million barrels of oil equivalent of condensate.</p>