Britain is expected to account for about 25% of the total oil and gas projects that are likely to begin operations in the continent by 2025
The UK is expected to drive forward a large portion of the upcoming oil and gas projects in Europe.
That is according to a report by data and analytics firm GlobalData, which predicts the nation will account for about 25% of the total projects that are likely to begin operations in the continent by 2025.
The analysis shows that new build projects lead the way with 62% while the remaining developments are expansion projects mainly in the upstream sector (fields).
GlobalData notes that 111 projects are expected to commence operations in the UK during the period between 2021 and 2025. Out of that, there will be 83 upstream projects, 23 midstream, three refinery-based and two in the petrochemicals field.
“The shallow waters of the North Sea will continue to drive the growth of upstream production projects in the UK,” said Soorya Tejomoortula, oil and gas analyst at GlobalData.
“The upcoming projects’ list has a good mix of both oil and gas developments and will help the country to continue to meet its oil and gas needs and reduce reliance on imports.”
Rosebank amongst the biggest upcoming oil and gas projects in the UK
Amongst the upcoming production developments in the UK is Norwegian state-owned firm Equinor’s Rosebank project, which will provide a total output capacity of 121,000 barrels of oil equivalent per day.
Sitting in deep waters about 130km to the west of Scotland’s Shetland Islands, the project will further enhance Britain’s energy security with the supply of both oil and gas.
GlobalData highlighted the Rosebank Export Line transmission pipeline as one of the nation’s key midstream projects. With a length of 236km, the $2bn pipeline helps to transport gas produced from the Rosebank field to the UK.
The Deborah Gas Storage Project, which sits about 40km from the north Norfolk coast, is another important midstream development in the UK.
Providing underground storage of gas, Italian company Eni’s $3bn project is expected to have a working gas capacity of 174 billion cubic feet.
It is set to increase the country’s gas storage capacity and can serve both the UK and northwest European markets, according to GlobalData.
The capacity increase of the Isle of Grain regasification terminal is also scheduled at a cost of $396m. The facility, which is owned by Grain LNG, a subsidiary of National Grid, will be the largest LNG import terminal in Europe once it starts operations in 2025.
Five refinery and petrochemical projects are also expected to start operations in Britain by the middle of the decade.
The 45-megawatt (MW) Pembroke Cogeneration Plant Expansion is a key refinery project with a cost of $170m, while the INEOS Group Hull Vinyl Acetate Monomer (VAM) Plant 2 is a major petrochemical development that will have a capacity of 0.3 million tonnes per annum and will cost $213m.