SSE has a 20% interest in the four gas fields and surrounding exploration acreage approximately 125km north west of the Shetland Islands, collectively known as the Greater Laggan Area; and a 20% interest in the new Shetland Gas Plant. Total E&P UK Limited is the operator of, and owns a 60% stake in, these assets. The remaining 20% is owned by Ineos.
The new Shetland Gas Plant is located close to Sullom Voe and processes and exports produced gas and condensate from developments in the west of Shetland for onward delivery to the St Fergus Gas Terminal for gas; and via the Sullom Voe Oil Terminal for liquids. This makes it one of the most important infrastructure developments in the UK. Production also started in February 2016 and it is expected to process and export gas and condensate for producers West of Shetland well into the 2030s.
Overall, in addition to helping meet SSE’s gas demand requirements, the acquisition is expected to create value over the long term, despite the current impact of lower gas prices, and represents SSE’s focus on maintaining a balanced range of energy businesses across its portfolio.