Ormen Lange landfall proposed

March 14, 2002, 16:30 CET

Nyhamn in mid-Norway has been recommended by operator Norsk Hydro as a landfall site for gas from the Ormen Lange field in the Norwegian Sea today, 14 March.

This assumes that a landfall in Norway is chosen. Hydro has made it clear that a big gap still exists between the cost of such a solution and direct pipeline export to continental Europe.

The operator has carried out extensive studies of the landfall issue within a tight schedule.

With 11 per cent of the licence, Statoil regards it as important that thorough efforts are devoted to a possible domestic landfall for Ormen Lange gas and potential other finds in the same area.

Before a final decision is taken on landing these resources, all coordination gains from bringing the gas ashore at the group’s Tjeldbergodden site in mid-Norway must be clarified.

Statoil takes the view that such benefits remain inadequately explored, and intends to propose to the licence that further studies of Tjeldbergodden are pursued in parallel with work on Nyhamn.

This could provide a more robust basis for deciding between landfalls in Norway or continental Europe.

Statoil believes that the Ormen Lange licence should reconsider Tjeldbergodden, already the landfall for the Haltenpipe line from Heidrun, should this option prove competitive with Nyhamn.

Since extensive impact assessments have already been done for Tjeldbergodden, Statoil believes that the licence will be able to carry out the required assessements within the operator’s timetable.

The group will propose a programme for further studies of Tjeldbergodden by the licence in the near future. It expects a decision on the scope of work to be taken by Easter.

See the press release from Norsk Hydro.