The operator of midstream oil and gas infrastructure assets in the North Sea Ancala Midstream has secured a life-of-field contract to transport and process gas from Lundin Energy’s Solveig field.
The Solveig field , located in the Norwegian sector of the North Sea, is operated by Lundin Energy’s Norwegian arm and first gas is expected in the third quarter of 2021. The gas will be processed through Ancala’s capacity in the Beryl pipeline and the Scottish Area Gas Evacuation pipeline and terminal (SAGE System) at St. Fergus in Scotland.
Ancala will also provide transportation and processing for Lundin’s extended production test on the Rolvsnes field which is expected to start production in the third quarter of 2022 and is also located in the Norwegian part of the North Sea.
Solveig is the first of two new fields tying into Ancala’s capacity in the SAGE System in 2021 and will increase the company’s throughput in SAGE to 55 per cent.
Jim Halliday , chief executive of Ancala Midstream, said: “ The addition of two new fields and the substantial reserves growth from the prolific Edvard Grieg area, provides further evidence of the strong prospectivity in the SAGE catchment area, as well as the confidence our customers have in the SAGE System as their offtake system of choice.
“ We have worked closely with Lundin to develop innovative solutions to the technical challenges faced and in doing so reduced project development costs for the Solveig and Rolvsnes owners ”.
Kristin Færøvik , managing director of Lundin Energy Norway, added: “ We greatly appreciate the support we have received from the Ancala Midstream team in securing the transportation and processing agreements for the Solveig and Rolvsnes fields, which are key elements of our Edvard Grieg field hub growth strategies ”.
It is worth reminding that Ancala completed the acquisition of Apache’s interests in the SAGE System and the Beryl Gas Pipeline back in November 2017 . Following the acquisition, the company became the operator of both systems.