Norway Increases Security of EU's Gas Supply

October 9, 2007 // Published as a news service by IHS

"This project represents an essential contribution to the security of natural gas supply in the EU; furthermore, it demonstrates that technically challenging and environmentally sensible developments are possible in Europe, under fully competitive and open market conditions," said Andris Piebalgs, European Commission (EC) energy commissioner, welcoming the inauguration of the Ormen Lange field.

Due to stringent environmental requirements, the development of the field took 10 years, at a cost of €6.3 billion. The field was developed entirely on the sea bed at 1,000 meters below sea level.

Recoverable gas reserves from the Ormen Lange field are estimated at 397 billion cubic meters (BCM).

Exports to the U.K. and the European continent are expected to be moderate at first, but increase over the build-up period, to reach a plateau production of 70 million cubic meters (25 BCM per year) of gas and 50,000 barrels of condensate.

Global gas supplies to the European Union (EU) from Norwegian fields are expected to increase in the coming years from today's 85 BCM to 120 BCM per year, according to some production scenarios.

Along with the Langeled pipeline and the process plant at Nyhamna, the Ormen Lange project represents a major milestone for offshore ventures in rough, deep sea environments. The 1,200-km Langeled pipeline, which brings gas to the U.K., is the world's longest offshore pipeline and was realised by a consortium of major Norwegian and EU oil companies.

Source: European Commission.