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<strong>ENGLISH</strong><br />

ASSCO


Gas pipeline at Kårstø.


Contents<br />

Accepting responsibility, delivering as agreed page 4<br />

Motorways for Norwegian gas page 6<br />

Gas administrator page 11<br />

Kårstø’s key role page 13<br />

Kollsnes page 15<br />

Value chain for gas page 16<br />

Receiving terminals in Europe page 18<br />

Riser platforms – key hubs page 25<br />

Skanled – eastward bound page 26<br />

Facts about gas page 28<br />

The Gassled joint venture page 30<br />

Facts about <strong>Gassco</strong> page 30<br />

Produced: June 2007 Design: Steinar Iversen Reklamebyrå Photos: Øyvind Sætre, Henderyckx, Hans-Peter Heikens, Eirik Dankel<br />

Text: Ragnar Åsland English translation: Rolf E Gooderham Printer: HBO


Accepting responsibility,<br />

delivering as agreed<br />

We at <strong>Gassco</strong> take responsibility for transporting gas safely and efficiently from the Norwegian continental shelf (NCS). Our aim is<br />

to be a leading gas transporter in Europe. We will ensure reliable deliveries 24 hours a day, 365 days of the year, with the aid of our<br />

control room in Karmøy local authority north of Stavanger.<br />

Our offices at Bygnes.<br />

European demand for Norwegian gas is steadily rising. Norway ranks as the world’s third largest<br />

exporter of pipeline gas, and currently supplies more than 15 per cent of all natural gas consumed in<br />

OECD Europe. This proportion is likely to increase over the next few years.<br />

Norway’s ability to deliver gas is significant for the daily lives of millions of people. Its reputation as a<br />

reliable supplier would be threatened if these deliveries failed to arrive.<br />

Even minor shutdowns on the NCS affect a Europe increasingly dependent on gas imports. So high<br />

regularity is essential for maintaining the position of Norwegian gas in a growth market. Ensuring that<br />

the companies which export this commodity and their European customers view the transport system<br />

as reliable is commercially critical for us at <strong>Gassco</strong>. That puts reliability at the core of our business.<br />

Transport network. Capacity in the integrated transport system, which comprises pipelines, processing<br />

facilities, platforms and receiving terminals in continental Europe and the UK, has increased in recent<br />

years. It will be up to 350 million standard cubic metres (scm) of gas per day by 31 December 2007.<br />

The latest delivery record was set on 11 December 2006, when more than 300 million scm of gas was<br />

produced and delivered from the NCS in the course of a single day.


Health, safety and the environment. Our goal at<br />

<strong>Gassco</strong> is zero harm to people, the environment<br />

or material assets. This zero objective reflects a<br />

conviction that all harm can be prevented by<br />

systematic and purposeful work. We have<br />

established performance indicators which show<br />

the development in our HSE results over time. The<br />

trend in recent years has been positive for the<br />

activities we operate, with fewer critical incidents<br />

or personal injuries.<br />

Operatives in Dornum.<br />

Able people at every stage. Despite constant<br />

technological advances, our personnel and the<br />

expertise they possess are the primary reason<br />

we can claim to be reliable. We are accordingly<br />

committed to having able people at every<br />

stage. It is gratifying that we can recruit new<br />

employees who help to take our company forward.<br />

We have a stable and well-qualified staff,<br />

and regard ourselves as a change-oriented organ-<br />

isation in which everyone contributes to maintaining<br />

and developing the transport system. In<br />

this way, we can safeguard Norway’s leading role<br />

as a gas supplier.


ZONES ANd TArIffS<br />

The integrated system for Norwegian gas transport is divided<br />

into areas, each with fixed unit prices for transport and/or<br />

processing.<br />

Gassled area A: covers the pipeline carrying rich gas from the<br />

Tampen area of the North Sea to the Kårstø processing plant.<br />

Gassled area B: covers the pipeline carrying rich gas from the<br />

Halten Bank in the Norwegian Sea to Kårstø.<br />

Gassled area C: covers the Kårstø plant.<br />

Gassled area d: covers a number of pipelines, platforms and<br />

receiving terminals for transporting dry gas from Kollsnes and<br />

Kårstø, or directly from fields, to receiving terminals in the UK,<br />

France, Belgium and Germany.<br />

Gassled area E: covers the Kollsnes processing plant.<br />

GREAT BRITAIN<br />

FRANCE<br />

BELGIUM<br />

THE NETHERLANDS<br />

NORWAY<br />

DENMARK<br />

GERMANY<br />

SWEDEN


Motorways for Norwegian gas<br />

We operate a unique system for gas transport through an extensive network of pipelines which total 7 800 kilo-<br />

metres in length, as well as major industrial facilities, platforms and receiving terminals in continental Europe and<br />

the UK.<br />

PIPELINE frOM TO LENGTH dIAMETEr CAPACITY (scm/d)<br />

Haltenpipe Heidrun Tjeldbergodden 250 km 16-inch 7.0 mill<br />

Norne Gas Transport (NGTS) Norne Heidrun 126 km 16-inch 10.0 mill<br />

Åsgard Transport Åsgard Kårstø 707 km 42-inch 70.4 mill<br />

Statpipe rich gas Statfjord Kårstø 308 km 30-inch 26.7 mill<br />

Statpipe Kårstø Draupner S 228 km 28-inch 21.1 mill<br />

Statpipe Draupner S Ekofisk 203 km 36-inch 44.4 mill<br />

Statpipe Heimdal Draupner S 155 km 36-inch 30.7 mill<br />

Zeepipe Sleipner Zeebrugge 814 km 40-inch 41.9 mill<br />

Zeepipe Sleipner Draupner S 30 km 30-inch 50.0 mill<br />

Zeepipe IIA Kollsnes Sleipner 303 km 40-inch 72.0 mill<br />

Zeepipe IIB Kollsnes Draupner E 304 km 40-inch 71.0 mill<br />

Europipe Draupner E Dornum/Emden 660 km 40-inch 45.4 mill<br />

Europipe II Kårstø Dornum 650 km 42-inch 64.8 mill<br />

Franpipe Draupner E Dunkerque 840 km 42-inch 53.7 mill<br />

Norpipe Ekofisk Emden 440 km 36-inch 44.4 mill<br />

Vesterled Heimdal St Fergus 350 km 32-inch 36.0 mill<br />

Oseberg Gas Transport (OGT) Oseberg Heimdal 109 km 36-inch 41.9 mill<br />

Langeled (from 1 Oct 2006) Nyhamna Easington 1 200 km 42/44-inch 69.4 mill<br />

Tampen Link (from 1 Oct 2007) Statfjord Flags 23 km 32-inch 25.0 mill<br />

LANd-BASEd<br />

fACILITIES<br />

rISEr<br />

PLATfOrMS<br />

Kårstø gas processing complex, Norway Draupner S/E At Åsgard: Mikkel<br />

Kollsnes gas processing complex,<br />

Norway Sleipner Riser At Norne: Urd<br />

Installations also delivering natural gas to the<br />

transport network<br />

Emden receiving terminal, Germany Heimdal Riser At Statfjord: Statfjord East, Statfjord North, Snorre and Vigdis<br />

Dornum receiving terminal, Germany At Gullfaks: Tordis and Topas<br />

Dunkerque receiving terminal, France At Heimdal: Vale and Skirne<br />

St Fergus receiving terminal, UK At Jotun: Balder and Ringhorne<br />

Zeebrugge receiving terminal, Belgium At Sleipner: Sleipner East and West


Motorways for Norwegian gas cont<br />

THE WOrK dONE ArOUNd THE CLOCK IN OUr CONTrOL rOOM AT BYGNES NOrTH Of STAvANGEr IS HIGHLY SIGNIfI-<br />

CANT fOr OUr rOLE AS OPErATOr. ONE KEY jOB IS TO ENSUrE THAT CUSTOMErS rECEIvE THE COrrECT vOLUMES. OTHEr<br />

IMPOrTANT TASKS INCLUdE ENSUrING THAT THE PrOdUCTS WE SENd ON HAvE THE PrOPEr CALOrIfIC vALUE ANd THE rIGHT<br />

CONTENT Of WATEr, CArBON dIOxIdE ANd HYdrOGEN SULPHIdE.<br />

In addition, our control room operatives coordinate the whole<br />

daily flow of information on deliveries to the gas owners and the<br />

fields responsible for delivery.<br />

The control room is responsible for optimum operation of the<br />

transport system and for achieving 100 per cent regularity. We call<br />

this “system operation”.


Operatives in the control room at Bygnes.


The receiving terminal in Dornum.<br />

ONE Of OUr rOLES CAN BE COMPArEd IN A WAY WITH CONTrOLLING TrAffIC IN INTErNATIONAL AIr SPACE. TrAffIC BETWEEN THE<br />

PIPELINES IS ALSO CONSIdErABLE, ANd ONE Of OUr KEY jOBS IS TO AdMINISTEr THE CAPACITY AvAILABLE IN THE TrANSPOrT SYSTEM<br />

AT ANY GIvEN TIME.<br />

A CErTAIN NUMBEr Of BOOKING rOUNdS ArE HELd EvErY YEAr TO ALLOCATE CAPACITY. OUr jOB IS TO ACCOMPLISH THIS IN AN<br />

OBjECTIvE, NON-dISCrIMINATOrY ANd TrANSPArENT WAY WHICH BENEfITS ALL GAS SHIPPErS, ANd WHICH CONTrIBUTES TO THE<br />

MOST EffICIENT POSSIBLE UTILISATION Of rESOUrCES ON THE NCS.<br />

10


Gas administration<br />

System operation and capacity management. The 23 staff in our control room average 10 years of experience. Controlling the gas flow<br />

continues without a break around the clock. Three people work the night shift, while the day and afternoon shifts each have four operatives.<br />

Their main duties are to manage the gas flow through constant monitoring, regulate quality and ensure that the gas blend is correct. Since<br />

the various fields deliver different gas grades, these must be processed or mixed to achieve the desired quality before delivery to the buyer.<br />

Such blending allows us to deliver gas with the agreed composition virtually all the time.<br />

Our control room’s coordinatory role is extensive<br />

and multifaceted. In certain circumstances,<br />

we can instruct a field operator to deliver gas<br />

for a limited period. This happens, for instance,<br />

if a field shuts down for maintenance or other<br />

reasons. We can then require another field to<br />

deliver more and others to supply less. The<br />

control room is also involved in planning shortterm<br />

shutdowns which supplement major<br />

scheduled turnarounds. Transport capacity de-<br />

pends to some extent on the ambient water<br />

temperature along the pipelines, which means<br />

that more can be sold in the cold season. Using<br />

good temperature information, updated daily,<br />

and advanced computer models, we calculate the<br />

daily extra capacity available for sale in the winter.<br />

Planning ship calls at Kårstø also requires careful<br />

coordination with daily gas flows.<br />

Construction and development. A key challenge<br />

for us as operator is to run all our facilities safely<br />

and cost-efficiently. We are also required to make<br />

improvements, remove operational bottlenecks<br />

and increase accessibility in the gas transport<br />

system. Ensuring that all Norwegian gas reaches<br />

the market in an acceptable, safe and efficient<br />

manner is an important and responsible job. The<br />

value chain comprises five stages: production,<br />

transport to land, processing, onward transport,<br />

and sales/marketing.<br />

Production. Gas is produced from more than 30<br />

fixed and floating installations on the NCS.<br />

Transport to land. Gas is piped from the NCS to<br />

processing facilities on land. At this stage, it is<br />

usually a blend of dry gas (methane) and natural<br />

gas liquids (NGL – ethane, propane and butanes)<br />

known as rich gas.<br />

Processing. When rich gas reaches the processing<br />

plant, its pressure is reduced before the lightest<br />

(dry) gas and the NGL are separated in an extraction<br />

plant. The various NGL fractions are also separated<br />

into ethane, propane and butanes. This is<br />

accomplished by heating the mix at the base of a<br />

tall column, so that the lightest fraction vaporises<br />

and collects at the top. The residue is then sent to<br />

the next column and reheated. This fractionation<br />

process continues until all the NGLs have been<br />

separated out.<br />

11<br />

The Bygnes control room.


AT KårSTø, NGL IS SEPArATEd frOM rICH GAS ANd THEN SPLIT (frACTIONATEd) INTO PrOPANE, NOrMAL BUTANE, ISOBUTANE,<br />

NAPHTHA ANd ETHANE. THE PrOPANE IS STOrEd IN TWO LArGE ArTIfICIAL rOCK CAvErNS, WHICH HAvE A COMBINEd CAPACITY<br />

Of 140 000 TONNES. NOrMAL BUTANE, ISOBUTANE, NAPHTHA ANd ETHANE ArE HELd IN TANKS.<br />

KårSTø rANKS AS THE WOrLd’S THIrd LArGEST ExPOrT POrT fOr PrOPANE, NOrMAL BUTANE ANd ISOBUTANE, WHICH ArE<br />

KNOWN COLLECTIvELY AS LIqUEfIEd PETrOLEUM GASES (LPG). THESE PrOdUCTS ArE SOLd TO CUSTOMErS WOrLdWIdE.<br />

1<br />

The Kårstø processing plant.


Kårstø’s key role<br />

Kårstø north of Stavanger has been transformed over the past 25 years from poor pasture to one of the world’s largest processing<br />

plants for natural gas. Its capacity has been increased fivefold since operation began in 1985 through expansions, modifications and<br />

the installation of new equipment. And almost NOK 30 billion has been invested at the site since the Storting (parliament) approved<br />

the Statpipe development in 1981.<br />

With more than 30 fields tied back to Kårstø via<br />

pipelines, millions of cubic metres of gas and<br />

unstabilised condensate flow into the plant every<br />

day.<br />

Its original purpose was to receive and treat gas<br />

from fields in the northern North Sea, and this<br />

remains one of its main jobs. First gas arrived on<br />

25 July 1985, with dry gas starting its journey to<br />

Emden in Germany on 15 October of the same year.<br />

The Statpipe system carries gas from the northern<br />

North Sea to Kårstø.<br />

value creation. Kårstø is an important link in the<br />

value chain from reservoir to European customers.<br />

Fields in the Norwegian Sea were also connected<br />

to the European gas market with the development<br />

of Åsgard, construction of the Åsgard Transport<br />

and Europipe II pipelines, and expansion of the<br />

Kårstø plant.<br />

Completed on 1 October 2005, the Kårstø expansion<br />

project 2005 (KEP2005) made it possible to<br />

receive rich gas from the Kristin field via Åsgard<br />

Transport. Capacity at the plant was increased by<br />

20 per cent to 88 million scm per day. A plant to<br />

remove carbon dioxide from the sales gas was<br />

also built as part of KEP2005.<br />

A total of 638 cargoes of propane, butane, ethane,<br />

naphtha and stabilised condensate were shipped<br />

from Kårstø in 2006.<br />

Condensate is piped to Kårstø from the Sleipner<br />

area of the North Sea. At the plant, it is stabilised<br />

and fractionated in a dedicated facility which<br />

became operational on 1 October 1993. Roughly<br />

four million tonnes of stabilised condensate are<br />

shipped from the plant every year.<br />

An expansion in 2005 increased Kårstø’s ethane<br />

production capacity by more than 50 per cent to<br />

950 000 tonnes per annum.<br />

1


1<br />

The Kollsnes processing plant.


Kollsnes<br />

Troll contains the largest gas reserves discovered<br />

in the North Sea. Its development has been based<br />

on piping the gas to Kollsnes for processing, which<br />

began in 1996. Kvitebjørn and Visund have subsequently<br />

been tied to the plant.<br />

The Kollsnes process separates gas, NGL and<br />

condensate. After dewatering, the gas is<br />

compressed for onward transmission to Europe<br />

via Zeepipe, Europipe and other pipeline systems.<br />

The processing plant at Kollsnes north-west of Bergen plays a key role in Norway’s gas industry,<br />

and handles output from the Troll, Kvitebjørn and visund fields in the North Sea.<br />

A pipeline transports NGL from Kollsnes to the<br />

Mongstad oil refinery further north for<br />

fractionation into propane, butane and naphtha.<br />

Since the Kollsnes plant came on stream, its<br />

capacity has been expanded several times.<br />

Additions include an NGL extraction unit and a<br />

new export compressor. The facility can currently<br />

process up to 143 million scm of gas and 69 000<br />

barrels of condensate per day.<br />

1


Value chain for gas<br />

Receiving terminals<br />

are located at Emden and<br />

Dornum in Germany,<br />

Zeebrugge in Belgium,<br />

Dunkerque in France, St Fergus<br />

in Scotland and Easington in<br />

England.<br />

1<br />

OIL<br />

Oil and gas are formed<br />

from the remains of plants, algae,<br />

plankton and marine animals<br />

deposited on the seabed many<br />

millions of years ago, and converted<br />

to hydrocarbons under heat and<br />

pressure.<br />

Gas transport<br />

Gas is transported by ship in<br />

liquefied form, or by pipelines<br />

along the seabed.<br />

Oil transport<br />

Oil can be brought ashore by<br />

shuttle tankers which load<br />

from a buoy on the field, or by<br />

pipeline.<br />

Transmission/distribution<br />

Norwegian gas is transported from the<br />

receiving terminals to end users in<br />

households, industry and power stations<br />

through a well-developed distribution<br />

network.<br />

Oil refining<br />

Crude oil comprises a blend of<br />

liquids or fractions with<br />

different boiling points. In the<br />

refinery, these fractions are<br />

separated in a distillation<br />

column and then processed<br />

into such products as heating<br />

oil, diesel oil or petrol.<br />

A reservoir<br />

is a porous, permeable rock which contains<br />

petroleum, rather like water in a wet sponge.<br />

Three types of rock are needed to create a<br />

commercial reservoir – a source of<br />

hydrocarbons, the actual reservoir and an<br />

impermeable cap which creates a trap to<br />

retain the oil and gas.<br />

End users<br />

Natural gas is used in continental<br />

Europe and the UK by households,<br />

office buildings, market gardens and<br />

other commercial activities, power<br />

stations and manufacturing.


RICH GAS<br />

NGL<br />

Gas processing<br />

Rich gas is separated into various fractions by<br />

being passed through a series of tall columns.<br />

When the gas is heated at the bottom of a<br />

column, the lightest fraction rises to the top<br />

and is drawn off. This process continues until<br />

fractionation is complete. See the illustration<br />

on page 29 for further details.<br />

DRY GAS<br />

Dry gas<br />

is often called sales gas.<br />

It consists primarily of<br />

methane, but also contains<br />

some ethane.<br />

STORBRITANNIA<br />

Surveys and exploration wells<br />

Exploring for hydrocarbons calls for modern<br />

computers, geological maps and geophysical<br />

investigations. Seismic surveys use sound<br />

waves generated by an explosion, which<br />

travel through the rock and bounce back to<br />

microphones. These signals are then<br />

interpreted to map the “terrain”. Exploration<br />

wells are drilled from rigs or ships.<br />

NGL and condensate<br />

Once separated and fractionated, propane,<br />

butanes, naphtha and condensate are<br />

transported by ship.<br />

FRANKRIKE BELGIA<br />

Transport network<br />

Norwegian gas is transported through a network of pipelines totalling<br />

7 800 kilometres in length from fields on the NCS to receiving terminals<br />

in continental Europe and the UK.<br />

DANMARK<br />

NEDERLAND TYSKLAND<br />

NORGE SVERIGE<br />

Production and separation<br />

Oil and gas can be produced from platforms or<br />

advanced seabed installations. This wellstream,<br />

which may be under high pressure and temperature,<br />

is separated into its various components before<br />

transport and further processing.<br />

End users<br />

Gas is used as a fuel and as a<br />

feedstock for the petrochemical<br />

industry. This yields a number of<br />

commodities, particularly plastics.<br />

Toothbrushes, shopping bags, bottles,<br />

mobile phones and computers are<br />

among the products where natural<br />

gas is one of the most important raw<br />

materials.<br />

1


Receiving terminals in Europe<br />

WHEN NOrWEGIAN GAS IS PIPEd TO CUSTOMErS IN CONTINENTAL EUrOPE ANd THE UK, IT<br />

MUST fIrST PASS THrOUGH A rECEIvING TErMINAL. WE OPErATE SUCH fACILITIES IN GErMANY,<br />

BELGIUM, frANCE ANd BrITAIN.<br />

1


1<br />

The dornum receiving terminal.


eceiving terminals in Europe cont<br />

Last stop before the<br />

market<br />

Gas from the NCS is piped to receiving terminals in four European countries. Upon arrival, it<br />

undergoes a final quality check, metering, and regulation of pressure and temperature before<br />

being delivered to the downstream transport operators.<br />

dunkerque terminal<br />

The receiving terminal for the Franpipe line stands<br />

in Dunkerque’s Port Ouest in northern France.<br />

Established jointly by Gassled and Gaz de France,<br />

this facility was completed in the summer of 1998<br />

and is owned by Franpipe.<br />

Deliveries of sales gas from the NCS via Franpipe<br />

to Dunkerque commenced on 1 July 1998.<br />

The terminal is remotely operated from the<br />

Zeebrugge facility.<br />

0


Zeebrugge terminal<br />

The receiving terminal at Zeebrugge in Belgium is<br />

owned by the Zeepipe group, part of the Gassled<br />

joint venture, and Belgian company Fluxys. It is<br />

operated as an integral part of the Zeepipe<br />

system.<br />

Zeebrugge was chosen as the Zeepipe landfall<br />

because of its proximity to gas buyers in Belgium,<br />

France and Spain.<br />

The facility stands in the city’s port area and is<br />

linked to the landfall point by a six-kilometre overland<br />

line.<br />

Upon arrival at the terminal, the gas has its<br />

pressure regulated. Possible residual liquids and<br />

solid particles are removed, and the gas is metered<br />

and checked for quality before being transported<br />

on through the pipeline network to customers<br />

in Europe.<br />

The Zeebrugge terminal became operational in<br />

1993.<br />

1


eceiving terminals in Europe cont<br />

Easington terminal<br />

Langeled runs for 1 166 kilometres, making it the<br />

world’s longest underwater pipeline. We are also<br />

operator for this system, which starts at Nyhamna<br />

in mid-Norway and terminates at Easington on<br />

the UK east coast.<br />

Gas from Ormen Lange in the Norwegian Sea<br />

flows through the northern leg of Langeled to the<br />

Sleipner platforms in the North Sea, where it is<br />

blended to ensure the right quality and sent on.<br />

Emden hub<br />

The Emden metering station for Europipe and the<br />

Norsea gas terminal for Norpipe stand side by side<br />

outside this north German port. Emden has been<br />

a hub for Norwegian gas deliveries since Norpipe<br />

became operational in 1997.<br />

These facilities regulate gas pressure and<br />

temperature before it passes through a hydrogen<br />

sulphide treatment plant. The gas is also metered<br />

and checked for quality.<br />

Upon arrival in Easington, the gas is regulated<br />

to the correct pressure and temperature before<br />

being passed into the British distribution system.<br />

The southern leg of Langeled became operational<br />

on 1 October 2006, with the northern leg following<br />

on 1 October 2007 when the Ormen Lange<br />

processing plan came on stream.


St fergus terminal<br />

This facility stands 61 kilometres north of<br />

Aberdeen in Scotland, and became operational<br />

in 1977. The terminal receives dry gas in the<br />

Vesterled system in addition to rich gas<br />

arriving through Britain’s own Flags transport<br />

system. Gassled owns Vesterled, while we are its<br />

operator.<br />

dornum terminal<br />

Gas comes ashore from the Europipe and Europipe<br />

II pipelines at the Dornum receiving terminal<br />

in northern Germany.<br />

This facility filters, pressure regulates, heats and<br />

meters the gas before it enters the Netra<br />

transport system or a 48-kilometre land line to<br />

Emden for further metering and distribution.


Draupner.


Riser platforms – key hubs<br />

The Draupner S and E installations represent<br />

a key hub in the gas transport network on the<br />

NCS. Their main function is to monitor pressure,<br />

volume and quality.<br />

With seven risers (vertical pipelines) ranging<br />

from 28 to 42 inches in diameter and associated<br />

manifolds, these platforms play a key role in gas<br />

transport to continental Europe.<br />

The B-11 platform stands in the German sector<br />

of the North Sea, south-east of Norway’s Ekofisk<br />

We also operate riser and compressor platforms related to the pipelines.<br />

centre, and serves as a compressor facility on the<br />

Norpipe gas line to Emden.<br />

Heimdal Riser is tied to the Heimdal platform and<br />

operated as an integral part of the latter. This<br />

installation is a hub which distributes gas from<br />

the Oseberg Gas Transport system to the Statpipe,<br />

Vesterled and Grane lines, together with gas from<br />

Huldra, Heimdal, Vale and Skirne.


Skanled – eastward bound<br />

We were commissioned by the Ministry of Petroleum and Energy in April 2005 to investigate interest in a gas transport system<br />

for Norway. This has proved to be high, and we presented the basic technical calculations for a solution in October 2006.


The transport system currently under consideration has been named Skanled. It will involve a pipeline<br />

running from the Kårstø processing plant to Rafnes in the Grenland region south of Oslo, and on to<br />

western Sweden and Denmark.<br />

Plans call for a mix of ethane and normal sales gas to be piped from Kårstø to Rafnes. A separation plant<br />

will then remove the ethane and other heavier hydrocarbons for use in the local petrochemical industry,<br />

replacing today’s transport of such feedstock by ship from Kårstø.<br />

Part of the sales gas will also be used in the Grenland area, while a compressor station ensures onward<br />

export of the remaining gas across the Skagerrak.<br />

Both national and international companies have expressed interest in the project, and commercial<br />

support is now great enough to meet the full ownership requirement. A decision on implementing<br />

Skanled is due to be taken in 2009, with possible completion in late 2012.


Facts about gas<br />

Many terms and expressions are used for oil and gas. Petroleum is a collective designation for hydrocarbons,<br />

whether solid, liquid or gaseous.<br />

Gscm<br />

Giga standard cubic metres – one billion cubic<br />

metres of gas at 0.01325 bar and 15°C.<br />

CNG<br />

Compressed natural gas.<br />

LNG<br />

Liquefied natural gas, primarily methane, which<br />

has been converted to liquid by cooling to -163°C<br />

at atmospheric pressure. One tonne of LNG<br />

corresponds to roughly 1 400 scm of gas.<br />

LPG<br />

Liquefied petroleum gases. Consist primarily of<br />

propane and butanes. They are obtained at Kårstø<br />

through fractionation and cooling.<br />

Natural gas<br />

Petroleum components (fractions) which primarily<br />

comprise light hydrocarbons. These can be divided<br />

into dry gas and NGL (see below). Also known as<br />

sales gas, dry gas consists largely of methane but<br />

can often contain a certain proportion of ethane<br />

and small quantities of heavier hydrocarbons.<br />

Condensate<br />

Embraces the heavier fractions in natural gas,<br />

such as pentane, hexane and heptane.<br />

Condensate is liquid under atmospheric pressure<br />

and temperature.<br />

Naphtha (natural gasoline)<br />

A volatile condensate which contains less of the<br />

heaviest fractions.<br />

NGL<br />

Natural gas liquids. Comprise the heavier gases<br />

ethane, propane and butane as well as small<br />

amounts of pentane, hexane and heptane.<br />

ncm<br />

Normal cubic metre at a reference condition of<br />

0°C and 1.01325 bar.<br />

oe<br />

Oil equivalent. Oil and gas are often quantified as<br />

oil equivalent. As a rule of thumb, one tonne oe =<br />

one tonne of oil = 1 100 scm of sales gas.<br />

smc<br />

Standard cubic metre at a reference condition of<br />

15°C and 1.01325 bar.


dId YOU KNOW THAT...<br />

When you clean your teeth in the morning, the<br />

brush you use is likely to be processed natural<br />

gas. And if you eat a gourmet meal in a Parisian or<br />

London restaurant, the chances are good that the<br />

food has been cooked on Norwegian gas.<br />

A number of well-known products which<br />

surround us, such as plastic bags and bottles,<br />

mobile phones and computers, derive from<br />

natural gas – one of the most iportant feedstocks<br />

for plastics production.<br />

COMPOSITION Of<br />

vArIOUS GAS TYPES rich gas<br />

Rich gas/<br />

condensate<br />

dry gas<br />

(Sales gas) LNG NGL LPG Condensate<br />

Gross<br />

calorific<br />

value (GCV)<br />

MJ/scm<br />

Methane 37.7<br />

Ethane 66.0<br />

Propane 94.0<br />

Butanes 121.0<br />

Naphta 150 +<br />

Condensate > 150<br />

= heat<br />

Dry (sales) gas<br />

by pipeline to Europe<br />

GCV MJ/scm 43-46 39-40 38-40 90-100 abt 100 > 150<br />

Methane<br />

Ethane<br />

Propane<br />

NGL<br />

is transported by ship<br />

Extraction plant Fractionation plant<br />

Butanes<br />

Naptha<br />

Condensate


The Gassled joint<br />

venture<br />

With effect from 1 january 2003, virtually all the Norwegian transport systems were integrated in Gassled, a large new joint venture<br />

between the oil and gas companies involved on the NCS.<br />

Gas transport on the NCS was originally organised in various joint ventures, which owned the different<br />

pipelines and terminals.<br />

Gassled has no employees and is run through various committees with specific duties. This joint<br />

venture is the formal owner of the infrastructure for gas transport from the NCS.<br />

Facts about <strong>Gassco</strong><br />

We were founded by the Ministry of Petroleum and Energy on 14 May 2001 as a limited company wholly owned by the Norwegian<br />

state. We became the operator for gas transport from the NCS on 1 january 2002.<br />

Before our creation, such transport was operated by several companies. We were established as part of<br />

an extensive restructuring of the Norwegian oil and gas sector since 2001. Our head office is located<br />

at Bygnes in Karmøy local authority north of Stavanger, and lies roughly 15 kilometres from the port of<br />

Haugesund.<br />

0


GASSCO AS P O Box 93, NO- 5501 Haugesund, Norway. Visiting address: Bygnesvegen 75, NO- 4250 Kopervik.<br />

Tel: +47 52 81 25 00. www.gassco.no

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