Ancala Midstream secures Lundin Energy Norway gas transportation and processing contracts

Source: press release, 8 March 2021

The Beryl pipeline and the SAGE System at St. Fergus in Scotland
The Beryl pipeline and the SAGE System at St. Fergus in Scotland (illustration: Ancala Midstream)

Ancala Midstream Acquisitions has secured a life-of-field contract to transport and process gas from the Solveig field located in the Norwegian sector of the North Sea.

The Solveig field is operated by Lundin Energy Norway AS and first gas is expected in Q3 2021 and 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.

Aberdeen headquartered Ancala Midstream will also provide transportation and processing for Lundin’s extended production test on the Rolvsnes field which is expected to commence production in Q3 2022 and is also located in the Norwegian Sector of the North Sea.

Solveig is the first of two new fields tying into Ancala Midstream’s capacity in the SAGE System in 2021 and will increase Ancala Midstream’s throughput in the SAGE System to 55%.

Jim Halliday, Chief Executive of Ancala Midstream, comments, “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. Ancala Midstream’s growth since 2017 shows that our operating and commercial strategy is delivering results. We would like to thank the other SAGE owners for their collaboration.”

Kristin Færøvik, Managing Director, Lundin Energy Norway, comments, “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. We look forward to future additions to the portfolio and further business with Ancala Midstream.”