Produced by Genesis Oil and Gas Consultants Ltd. 2007

The West of Shetland area represents nearly a fifth of the UK's remaining oil and gas reserves, and its development will help to reduce the UK’s exposure to energy imports and improve the nation's security of supply.

DONG Energy is coordinating the West of Shetland Task Force, a joint UK Government and industry body focused on identifying technically and economically viable projects that could act as a West of Shetland gas infrastructure hub.

The Task Force was set up in November 2006 and is part of the UK Energy Review. It comprises five companies with discoveries in the region most likely to see development in the short to medium term. These companies are BP, Chevron, DONG Energy, ExxonMobil and Total.

Technical and economic analysis looked at the options for developing a gathering hub together with the associated gas pipeline, which would allow gas to be brought to shore. Four, generic hub scenarios have been identified and these form the basis for further technical and economic evaluation in 2008 :

Onshore Hub at Sullom Voe
Offshore Shallow Water Hub
Offshore Deepwater Hub at Laggan
Alternative Deepwater Hub at Rosebank-Lochnagar
Development West of Shetland has been constrained by the shortage of transportation infrastructure to deliver gas into the market.  Several alternative gas transportation routes are being considered as part of the Task Force analysis, as well as the option to use existing infrastructure. The final outcome will depend largely on the nature and location of the hub, but the two main options - a pipeline from an onshore hub at Sullom Voe and a pipeline direct from an offshore hub - will deliver gas into the market at St Fergus.