Largest decommissioning project for Shetland

It’s been 50 years since the oil and gas boom reached Shetland’s shores, and it is once again delivering huge new benefits and opportunities to Shetland – this time through the decommissioning industry.

With the transition to cleaner energy moving full speed ahead, and much offshore infrastructure reaching the end of its productive life, many companies are looking to Shetland as the prime location for decommissioning these major installations.

Lerwick Harbour – perfectly located in the North Sea and ready to receive these developments – has also carved out a stellar reputation for being able to accommodate and complete huge decommissioning projects.

The 17,200-tonne North Cormorant topside arrived in August 2026 and is the biggest project handled by the Lerwick Harbour to date, marking another major milestone in its capability to decommission large North Sea installations.

That follows on the back of the Ninian Northern topside in 2020, then Shetland’s biggest decommissioning project at 14,200 tonnes. It was dismantled in part by local firm Peterson Logistics, which worked with Veolia. The project created and sustained jobs locally while also delivering benefits to the Shetland supply chain.

Located only 100 miles from the field, Lerwick's strategic position, deep-water facilities and established decommissioning infrastructure showed why the port is an ideal location for the emerging sector.

Shetland is set to become an even more attractive proposition for energy companies in the years to come. Lerwick Port Authority is set to complete a major project in September 2026 to introduce an ultra-deep-water quay. That would mean the harbour could handle even bigger ships and even bigger projects.

This will be a transformational investment, it says, not only for Shetland but for the UK. The only ultra-deep-water quay in the UK at the time of writing, it will have an initial depth of 21 metres – and could be extended to 25 metres.

Lerwick Port Authority says this will “significantly expand Lerwick’s ability to support major decommissioning campaigns, as well as the assembly and deployment of large floating offshore wind structures”.

“The investment is designed to improve the ability to handle larger vessels across a range of industries, keeping pace with the requirements of new generation vessels in the pelagic fishing, cruise and energy sectors.

“By increasing water depths and improving access, the work will allow more customers to make full use of the harbour’s facilities and support future growth.”

The investment should ensure that decommissioning continues to play an important part in Shetland’s economic future.

It is anticipated that the UK decommissioning industry will spend around £15 billion dismantling offshore infrastructure in the 2020s, with more sure to come as oil and gas installations reach the end of their lifespans. Around 100 installations, 1,600 wells, 8km of pipelines and 70,000 tons of subsea structures will be decommissioned over the coming years.

And Shetland remains well-placed to develop and become a decommissioning hub in the same way it has supported the UK energy industry over the decades.

“With significant offshore infrastructure reaching the end of its operational life, there is a substantial opportunity for Shetland to capture more of this work, creating jobs, supporting local supply chains and delivering greater economic value from North Sea assets on our doorstep,” Lerwick Port Authority says.

“For the UK, the opportunity is about more than providing a port for decommissioning.

“It is about retaining high-value offshore work, skills and expenditure in the UK, strengthening supply chains and supporting coastal communities such as Shetland.

“Lerwick Harbour is well positioned to play a significant role in delivering that opportunity.”

The decommissioning of the North Cormorant topside is expected to take 18 months, delivering sustained business for local contractors and companies, while also continuing to support employment, skills and the wider Shetland supply chain.

Peterson Logistics are once again involved in the project, showcasing the high regard in which local firms are considered while delivering these decommissioning works.

As more oil and gas companies and their workers transition away from fossil fuels towards cleaner energy, the desire to move into decommissioning in Shetland is growing.

And with more decommissioning projects on the horizon, Shetland is set to be at the forefront of the industry for years to come.

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