The Group’s midstream operations include its onshore Sullom Voe Oil Terminal (‘SVT’), the Ninian Pipeline System, which transports crude oil to SVT, the east of Shetland gas pipeline, which provides the route for west of Shetland gas through the Magnus asset to Northern Leg Gas Pipeline ('NLGP') and the NLGP, which transports natural gas via the Brent A platform into the UK National Transmission System.
The Sullom Voe Terminal is one of the largest oil terminals in Europe. It is located at the northern end of the largest of the Shetland Islands, strategically positioned to receive production from both the east and west of Shetland producing areas. The asset is of strategic importance to EnQuest, receiving around one-third of the Group’s UK North Sea production.
Since taking over operatorship at SVT, the Group has worked in close collaboration with all its stakeholders to optimise safely and sustainably the size and scale of plant required to ensure the terminal continues to meet existing and future customer needs. This focus has driven base operating expenditure reductions of around one-third, through progressively reducing the physical infrastructure in place. The efficiency programme is continuing to progress in line with expectations.
When EnQuest acquired the operating interests in the producing Magnus asset and the onshore Sullom Voe Oil Terminal in Shetland, the associated pipelines were also purchased. These pipelines are of strategic importance.
The Ninian Pipeline System, where EnQuest has an 18.0% share, transports crude oil to SVT, the east of Shetland gas pipeline, which is 100% EnQuest owned, provides the route for west of Shetland gas through the Magnus asset to the Northern Leg Gas Pipeline ('NLGP') and the NLGP, where EnQuest has a 43.9% share, delivers natural gas for onward transportation via the Shell-operated FLAGS pipeline and into the UK National Transmission System.