Economic Report 2013

Cygnus is the largest gas discovery in the SNS during the last 25 years. The project has reached development thanks to innovative geological and technical thinking by operator GDF SUEZ E&P UK and also because of a tax relief for large, shallow water gas fields announced by the government in July 2012. The partners are investing approximately £1.4 billion in the project, of which more than 80 per cent is being spent in the UK with the creation of 4,000 direct and indirect jobs. First gas from the field is expected to be produced in late 2015. It will meet the demand of nearly one and a half million homes at the plateau of its production in 2016, when it will be the second largest gas producing field and account for around five per cent of the UK’s gas production. The development concept comprises two drilling centres. The central production, processing and accommodation facilities

consist of three bridge linked platforms (Alpha Production and Utilities (PU), Alpha Quarters and Utilities (QU) and AlphaWellhead Platform (WHP)) located on Cygnus East. The second drilling centre will be a satellite WHP (Bravo WHP) located approximately seven kilometres north-west of Alpha on Cygnus West and will be tied back to the Alpha PU via a 12 inch pipeline. There will be compression facilities situated on Alpha PU in order to meet the field’s full production potential. The Bravo WHP will be a ‘normally unattended installation’ and the gas export route will be via a 24 inch, 55 kilometre pipeline connected to the Esmond Transmission System and through to the onshore gas terminal at Bacton in Norfolk. GDF SUEZ E&PUK is alignedwithOil &Gas UK in the industry body’s constructive engagement with HMT and DECC. This dialogue has resulted in a range of tax measures, such as the small

Figure 26: Field Layout of the Cygnus Development

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ECONOMIC REPORT 2013

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