Shell Boosts Europe’s Energy Security with Ormen Lange Gas Field Expansion

UK-headquartered energy giant Shell has brought online a new phase of its natural gas field in the Norwegian Sea, enhancing Europe’s energy security.

Shell’s Ormen Lange Phase III project has commenced production, increasing gas volumes for Europe through the installation of two subsea compression stations. These stations aim to raise field recovery from 75% to 85%, with the capacity to accommodate eight wells on each of the four well frames installed on the field.

The subsea compression, as per the plan for development and operation (PDO), is expected to recover an additional 30-50 billion cubic meters (bcm) of gross gas production from the Ormen Lange field located 120 kilometers from the processing and export facility at Nyhamna.

Shell operates the field (17.8%), with partners including Vår Energi (6.3%), Petoro (36.5%), Equinor Energy (25.3%), and Orlen Upstream Norway (14%). Gas from Ormen Lange is exported to European markets through Langeled and the Norwegian gas export system.

Vår Energi, Shell’s partner, celebrates the launch of the third phase ahead of schedule and under budget, viewing it as a significant step towards achieving their target of producing over 400,000 barrels of oil equivalent per day in the fourth quarter of this year.

The compression system is powered by two 120-kilometer cables connected to the Norwegian grid, predominantly fueled by renewable energy sources, thus reducing the carbon intensity of Ormen Lange Phase III’s gas production process compared to fossil fuel-powered facilities.

“Ormen Lange is one of Norway’s most complex and technologically demanding field developments. The gas from Ormen Lange meets up to 20% of the UK’s gas demand,” emphasized Shell.

Following the partners’ decision for offshore compression in 2021, approval was secured in July 2022, allowing the installation of two compressor stations on the seabed near the wellheads to produce an additional 30-50 billion cubic meters of natural gas, boosting the field’s recovery rate.

Ormen Lange, Norway’s second-largest gas field, operates at depths of 850 to 1,100 meters with all offshore production equipment situated on the seabed, approximately 120 kilometers northwest of Kristiansund in the Norwegian Sea.

Once processed at Nyhamna, the gas stream from Ormen Lange is exported through Langeled, with a receiving point in Easington, England, offering flexibility to route the gas to other destinations via a hub in the North Sea.