px Group sign agreement to operate Shetland gas pipeline

by Tom Morton -

The px Group has signed a long term agreement with North Sea Midstream Partners (“NSMP”) to operate and maintain (O&M) the SIRGE (Shetland Islands Regional Gas Export system and Frigg UK offshore gas pipelines, along with the associated St. Fergus Gas Terminal.

The O&M agreement will take effect on completion of the sale of these assets by Total to NSMP as separately announced by Total.

The Shetland Island Regional Gas Export System (SIRGE) is a 234-kilometer, 30” gas pipeline with a capacity of 665 Mmscf/d connecting the Shetland Gas Plant to the FUKA pipeline. Total holds a 67% operated interest in the SIRGE pipeline alongside Dong E&P (UK) Limited (18.3%), Chevron North Sea Limited (7.2%) and OMV (UK) Limited (7.5%).

The Frigg UK Pipeline (FUKA) is a 362-kilometer, 32” gas pipeline delivering gas from some 20 fields in the Northern North Sea to the terminal at St Fergus, about 35km north of Aberdeen. Total holds a 100% operated interest in the FUKA pipeline. The St. Fergus Gas Terminal is a three-train processing plant with a capacity of 2,648 million cubic feet of gas per day (Mmscf/d), currently serving over 20 fields. Total holds a 100% operated interest in the terminal.

Director of Operations at px, Stewart Mortlock, will oversee the commencement of the contract later this year. Total staff working on the site, and some affected staff in Aberdeen, will transfer to px under the TUPE employment regulations, increasing the business’ headcount by around 25%.

Resident contractors working on the assets will continue to do so as px intends to carry on with these key contracts. A new Aberdeen office will be opened to provide engineering and commercial management of the infrastructure.

At the same time as taking on operations at St. Fergus, px has extended its O&M contract at Teesside Gas Processing Plant - also owned by NSMP.

Ian Clifford, px Chief Executive Officer , said: “We are delighted to have been selected as the operations and maintenance partner for one of the UK’s largest gas processing operations and to extend our long standing agreement on Teesside. This significantly grows and strengthens our business, provides job security for existing employees and is likely to create around 25 new positions over the coming months. It also further demonstrates the competency and skill set of the px group to provide professional O&M services to the oil and gas industry. As a business working in high hazard industries, we make the safety of our people and the protection of the environment our top priorities."

Posted in: Oil and Gas