North Sea Cygnus gas field enters production

Offshore staff

LONDON – First gas from the Cygnus development in the UK southern North Sea has been exported to the Bacton gas terminal in North Norfolk, according to operator ENGIE E&P UK Ltd.

Cygnus is located in license areas P1055 and P1731, 150 km (93 mi) off the coast of Lincolnshire. The operator claims that it is expected to contribute 5% of UK gas production, supplying sufficient gas to heat the equivalent of 1.5 million UK homes. 

Ruud Zoon, managing director of ENGIE E&P UK Ltd., said: “First gas from Cygnus represents a significant boost to the UK’s long-term energy security, with an estimated production life exceeding 20 years. Furthermore, with over 80% of the contract work secured by British businesses – including fabrication yards in Hartlepool, Methil, and Burntisland – it is a showcase for the technical and commercial excellence of the UK oil and gas supply chain.”

The Cygnus complex comprises four platforms, 10 wells, and two subsea structures, and serves an estimated field size of 250 sq km (96.5 sq mi). It is expected to achieve plateau production of 250 MMcf/d.

Equity interests are ENGIE E&P UK Ltd. (38.75%) and partners Centrica (48.75%) and Bayerngas (12.5%).

The partners are evaluating further opportunities in the Greater Cygnus area with the aim of bringing additional volumes through Cygnus when capacity becomes available. 

Andy Samuel, chief executive of the Oil & Gas Authority, concluded: “ENGIE E&P, Centrica, and Bayerngas have demonstrated an impressive collaborative effort in achieving first production from Cygnus. It represents a significant milestone for the Southern North Sea, delivering new volumes through existing infrastructure, utilising the UK’s skilled supply chain and helping create the right conditions for further developments.

“This is set to continue with the next phase of development from Cygnus Bravo which will bring additional capacity onstream in the future to deliver MER UK.”

ENGIE E&P said that the project added about £1.3 billion ($1.6 billion) to the UK economy and supported nearly 5,000 jobs during its five-year development period.

12/15/2016

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