Life-extending cash boost for Shetland oil terminal

STV

A massive investment in Shetland's Sullom Voe oil terminal will extend the facilities' life for a further 25 years.

Sixty million pounds is to be spent on a major construction project, the biggest there since the 1980s oil boom.

At its peak the terminal separated more than 3,000 tonnes of gas every day from the 1.5 million barrels of oil from the North Sea.

But now it handles just 100 tonnes of gas a day - meaning many of the corroding metal pipes, which are costly to maintain, no longer serve a useful purpose.

The new plant will handle much less gas in a different way. The days of exporting liquid petroleum gas on board tankers are over.

Now it will be used to run the terminals' power station or be piped out into the North Sea to be re-injected into oil fields to help recover more from the Magnus field.

The Aurora gas project this month celebrated a milestone having put a 100 tonne tower in place using Europe's largest mobile crane.

Sullom Voe Terminal Manager, Lindsay Boswell said: "We started construction in August last year and we will complete around August next year. It sets us up for the long term future for Sullom Voe."

Employee numbers at the terminal will fall from 214 to 170 as North Sea production dwindles.

But it is hoped more work coming from new oil fields West of Shetland will compensate for that.

Councillor Alistair Cooper said: "BP will be shedding staff when the gas plant is commissioned. But Total is building a new gas plant and they will be employing 60 or 70 folk.

“So the wages going into the local economy will stay at a level whereby folk shouldn't see any difference."

Sullom Voe transformed the Shetland economy when it opened in the 1970s. The new investment means it will provide career opportunities for a whole new generation of young islanders.