Shell has made its Final Investment Decision (FID) concerning the construction of a 37-km underwater gas pipeline from the Fulmar Gas Line to Shearwater which will be jointly constructed with Exxon Mobil and BP. The construction will include a modification of the Shearwater platform to allow production and processing of wet gas. The hub is expected to produce as much as 400 million cu ft. per day.
The construction of this pipeline also opens up other options in the area - if the pipelines are subsequently linked into the Jackdaw field to ensure maximum recovery from the North Sea. Getting operators to keep investing in the pipeline network is a vital way of ensuring smaller deposits don't get stranded and rendered uneconomic.
Steve Phimister, Shell's vice president for upstream in the UK, said: "This is part of our strategy to grow our gas production from around the Shearwater platform and it underscores Shell's commitment to maximising the economic recovery of oil and gas from the North Sea. "Through close collaboration with our partners and suppliers, we have been able to reduce costs, simplify the production process and create an important production hub at Shearwater. Fifty years after Shell began working in the North Sea, we continue to invest in projects to deliver more gas to UK consumers for years to come."