Gas production starts at Ormen Lange

Gas production from the Ormen Lange field on the Norwegian continental shelf began Thursday. Completion of this breakthrough development will make Norway the world’s second-largest exporter of natural gas.

At full production, Ormen Lange is expected to meet 20 percent of the UK’s requirements. Exports to the UK and the European continent will be moderate at first, and increase over the autumn.

The development and operation plans for the Ormen Lange field and the Langeled gas pipeline were approved unanimously by the Norwegian Parliament on April 2, 2004. Phase 1 of the development, involving the Langeled gas pipeline, the land-based process plant at Nyhamna and offshore installations on the Ormen Lange gas field itself, was completed within the total budget of NOK 50 billion (in 2003 Norwegian krone terms).

Maximum daily exports from the Ormen Lange field will amount to 70 million cubic meters of gas and 50,000 barrels of condensate. The gas will be piped to the UK through the Langeled pipeline which, along with Vesterled, is the second direct export pipeline to the UK from the Norwegian continental shelf.

With annual exports of more than 85 billion cubic meters, Norway is currently the world’s third-largest exporter of natural gas. When Ormen Lange reaches plateau production in 2010, gas exports from Norway will increase to 120 billion cubic meters, or 20 percent of Europe’s gas requirements.