Shetland port selected as energy development hub

Lerwick Harbour will be used as the base for delivery, storage, and mobilization to support construction during the development phase of the Rosebank oil and gas field, north-west of Shetland.

Norwegian Oil and Gas company Equinor has selected the port as the main hub that will be used to support the development of the field.

For the first phase of work, contractor TechnipFMC will be responsible for integrated engineering, procurement, installation and construction for Rosebank. The subsea production systems, umbilicals, risers, and flowlines it manufactures will be delivered, stored, and mobilised at the deep-water port.

Local supply chain companies will support Equinor and its contractors through various work scopes, which will sustain and develop local employment opportunities.

It is anticipated that Shetland’s strategically ideal location, close to future oil and gas and clean energy developments, combined with decades of energy industry experience, mean the islands will provide a skilled and efficient network for many projects in the coming years.

The harbour’s deep-water facilities and excellent quayside and laydown areas make Lerwick a prime choice for servicing and supporting offshore developments.

Equinor is expected to invest billions in developing the field, backed by the skilled and experience workforce readily available in Shetland.

Equinor recognizes that the decision to proceed with Rosebank has split opinion due to climate concerns, but says it is part of the transition to carbon neutral energy production.

Plans are also being rolled out in Shetland to ensure the islands remain a key player in the clean energy industry. The 103-turbine Viking Energy project is nearing completion and further highly-productive on-shore wind farms and strategically important offshore wind farms are expected to be developed near Shetland.

There are also ambitious plans to transform the Sullom Voe Terminal, which was built in the 1970s as Shetland became a crucial centre for the North Sea oil industry. As that sector transitions to clean enery, there are plans to develop a clean energy hub generating green hydrogen for export - securing Shetland's future as clean energy islands.

Lerwick Port Authority Chief Executive, Captain Calum Grains, said the decision to use the port as the support hub for the Rosebank project was, “another significant opportunity for Lerwick and Shetland to continue serving the energy sector”.

“We are perfectly positioned to support this project, both in proximity to the field, bringing savings in sailing times, fuel and emissions, and minimising vessel turnaround time, and with our ready-made facilities, including extensive quaysides and laydown.

“The Rosebank development is an excellent example of how the offshore industry is implementing measures to counter climate change with lowest emissions possible while helping to secure the UK’s energy supplies enroute to net zero.”

Equinor and partner, Ithaca Energy, are investing USD $3.8 billion in Rosebank, located around 130 kilometres north-west of Shetland with the largest untapped reserves in UK waters. Subsea wells will be tied back to a redeployed Floating Production Storage and Offloading vessel (FPSO), Petrojarl Knarr, with start-up from phase one planned in 2026-2027.

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