From the North Sea (NT): Statoil has canceled the Kristin gas export project citing increased costs and increased risk to volume availability. The decision has been taken at a time when already incurred costs are minimal – no major contracts for either the pipeline or topsides modifications on the Kristin semi floater have so far been awarded, a spokesman told SEN.

The 30km, 18in pipeline would have provided a link to the Polarled (30/11) trunkline, thus providing an alternative for gas evacuation from the Halten Bank region of the Norwegian Sea. The only existing way out is the Åsgard Transport System, which is reported to have no spare capacity for several years into the future.

Future impact
It is unclear what impact cancellation of the pipeline project will have on future possible tiebacks to Kristin. The first in the queue would be is Wintershall’s Maria (30/18), but this is an oil field with little gas. However, Kongsberg Oil & Gas, which has a contract to supply subsea structures such as inline tees to both projects, says it will lose some NOK200mn due to the cancellation.

Following the indefinite shelving of Shell’s Linnorm (30/16) development last year, this move deprives Polarled of another potential source of business, leaving it with Statoil’s Aasta Hansteen (30/15) field as its only confirmed customer, although RWE Dea is looking to export Zidane (30/18) gas through Polarled via a tieback to Heidrun.

However today’s cancellation does not preclude the possibility of the Kristin pipeline being built at a later date.

‘The opportunity for the future connection of the Kristin field to the Polarled pipeline is maintained as necessary connection points continue to be part of the project,’ Statoil said.

Offshore