The UK arm of Shell has stated it has made its final investment decision (FID) in establishing a gas field in the North Sea, about 29 miles offshore of the Shetland Islands.
The company, which also makes the Shell range of lubricant and grease products, says that once the Victory field comes online, it will help supply power generators, businesses and homes in the UK with domestically produced gas. Of the gas consumed in 2022, only 38% of it had been produced in the UK (according to the North Sea Transition Authority), meaning that most had to be imported from other producers.
Simon Roddy, the senior vice president for upstream at Shell UK, said about the FID:
“The UK North Sea is a critical national resource, providing a steady supply of the fuels people rely on today and strengthening the country’s energy security and resilience. Continued investment is required to sustain domestic production, which is declining faster than the UK’s demand for oil and gas.”
Shell obtained the license to develop Victory in November 2022 when it acquired the entirety of Corallian Energy Ltd. The project will feature one subsea well and a 10-mile pipeline to tie it back to the Greater Laggan Area’s existing infrastructure.
Shell says this means its operational emissions, compared to existing fields in the UK North Sea, will be lower. Its expected peak production of 150 million standard cubic feet of gas each day will also be sufficient to provide heating for nearly 900,000 homes.
