Ancala Midstream wins gas processing contract from Lundin Energy

9 March 2021 (Last Updated March 9th, 2021 15:26)

Ancala Midstream Acquisitions has received a contract from Lundin Energy Norway to transport and process gas from the Solveig field.

Ancala Midstream wins gas processing contract from Lundin Energy
The Solveig field will start production in the third quarter of this year. Credit: Gabe Raggio / Pixabay.

Ancala Midstream Acquisitions has received a contract from Lundin Energy Norway to transport and process gas from the Solveig field.

Located in the Norwegian sector of the North Sea, the Solveig field is slated to commence production in the third quarter of this year.

Gas from the field will be processed through Ancala Midstream’s capacity in the Beryl pipeline and the Scottish Area Gas Evacuation pipeline and terminal (SAGE System) at St Fergus in Scotland.

The integrated gas transportation and processing SAGE System has 1,150ft³ of gas per day capacity from the northern and central North Sea.

The contract also includes transportation and processing for Lundin’s extended production test on the Rolvsnes field located in the Norwegian Sector of the North Sea.

The Rolvsnes field is due to commence production in the third quarter of 2022.

Ancala Midstream CEO Jim Halliday said: “The addition of two new fields and the substantial reserves growth from the prolific Edvard Grieg area, provides further evidence of the strong prospectivity in the SAGE catchment area, as well as the confidence our customers have in the SAGE System as their offtake system of choice.

“We have worked closely with Lundin to develop innovative solutions to the technical challenges faced and in doing so reduced project development costs for the Solveig and Rolvsnes Owners.”

The Solveig field is expected to increase Ancala’s SAGE System throughput to 55% and represents the first of two new fields planned to be tied into Ancala Midstream’s capacity in the SAGE System this year.

Lundin Energy Norway managing director Kristin Færøvik said: “We greatly appreciate the support we have received from the Ancala Midstream team in securing the transportation and processing agreements for the Solveig and Rolvsnes fields, which are key elements of our Edvard Grieg field hub growth strategies.”