Statoil cuts pipeline project

STATOIL has ended a horror week with the decision to scrap the Kristin gas export project in the Norwegian Sea due to unsustainable economics.
Statoil cuts pipeline project Statoil cuts pipeline project Statoil cuts pipeline project Statoil cuts pipeline project Statoil cuts pipeline project

The KGEP partners, comprising operator Statoil (53.4%), Petoro (35.6%) and GdFS (11%), terminated the pipeline as increased investment costs raised the risk of the project when compared to volume availability.

The project, reported to have a 2 billion krone ($A363 million) price tag for Statoil, would have built a 30km pipeline to link the Kristen field with the Polarled pipeline, which will link the company's Aasta Hansteen field to the Nyhamna gas plant.

Statoil said the KGEP represented less than 5% of Polarled volumes and termination would not influence execution of the Polarled project.

The opportunity for the future connection of the Kristen field to Polarled remains open, however, as necessary connection points for the field continue to be part of the project.

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