Four options are under consideration for a new development hub to the West of Shetland. A task force set up by the Department of Trade and Industry (DTI) has spotlighted the four
options as it bids to identify a collective solution to the development of resources in the region.

The team has looked at the various possibilities for development of a gathering hub which would allow gas to be brought to shore, and identified the best options as: an onshore hub at Sullom Voe, an offshore deepwater hub at Laggan, an offshore shallowwater hub close to Clair or a deepwater hub at Rosebank-Lochnagar.

The Task Force Work Group is made up of representatives from the DTI and the five key companies with operator control of assets/acreage in the region (BP, Total, Chevron, ExxonMobil, and Dong). It has met five times since project launch on Nov. 1. The project is already analysing the options in detail and aims to deliver a report to Ministers in the spring of next year.

Two consultants, Genesis Oil & Gas and Decisions Unlimited, have started work on the project, carrying out the technical and economic work required by the Task Force. The DTI said: “The Task Force is also addressing options for building a new pipeline to transport
gas from the West of Shetland to the UK mainland. Several alternative gas transportation
routes are being considered as part of the analysis as well as the option of using existing infrastructure.

Work on alternative commercial models for development will start in the New Year, including
options for involving other interested parties.” The UK government estimates that West of
Shetland represents a potential 17% of the UK’s remaining oil and gas reserves.

Source: Ogilvie's E&P Daily