Ormen Lange contracts worth NOK 129 million awarded

December 10, 2003, 08:00 CET

The owners of the Langeled pipeline have today awarded contracts of a value of total NOK 116 million for supply of large bore high-pressure valves to be installed in the Langeled gas transportation pipeline from the Ormen Lange field to Easington at the Yorkshire coastline of England.

Dresser Italia has been awarded the contract for 30-inch emergency shut-down ball valves, 42-inch sea floor ball valves and 42-inch gate valve - at a total value of NOK 80 million.

Petrovalve AS has been awarded the contract for double expansion gate valves - at a total value of NOK 36 million.

The valves are technologically demanding to produce, and metallically sealed sea ball valves of this type and size have never before been produced.

A total of 12 valves will be delivered to the Langeled pipeline. Delivery of actuators are also included into the contract. The valves will be delivered during the last quarter of 2004, and the first and second quarters of 2005.

Contract for Gas Receiving Facility

The Langeled Joint Venture has also awarded Parsons E & C's London office a contract worth GBP 1.1 million for the Front-End Engineering Design of the Langeled Gas Receiving Facility to be built at Easington.

The scope also includes definition of the gas link pipeline to Transco and minor modifications to the existing Centrica Terminal at Easington. There is an option to extend the contract to include detailed design, procurement and construction supervision.

The facility will serve the Langeled Transportation system, which will bring processed Ormen Lange gas in a 1,170 km subsea pipeline from Nyhamna in Mid-Norway via Sleipner to Easington. Gas from other fields can be transported to the UK from Sleipner.

397 billion Sm3 of recoverable gas

The Ormen Lange field, discovered in 1997, is located 100 km off the northwest coast of Norway where the water depth is 850 to 1,100 metres.  The field is the second largest gas field in Norway with recoverable gas estimated at 397 billion Sm3 and 28.5 million Sm3 of condensate. 

The total investment cost for the Ormen Lange project development is estimated at approx. GBP 5.7 billion.

The Ormen Lange license group, ConocoPhillips and Gassco represents the Langeled joint venture. Hydro is operator of Langeled in the planning and development phase. The plan is to include Langeled into the Gassled system which will be operated by Gassco will when the southern leg  comes on stream in October 2006. Statoil is on behalf of Hydro managing the execution of the Langeled project.