- Repurposing can save North Sea low-carbon industry billions of pounds
- Pipelines offer greatest opportunity in the energy transition
- Tool targets operators with fields nearing end of production
A new screening tool developed by the North Sea Transition Authority (NSTA) will help to maximise the repurposing of oil and gas infrastructure for energy transition projects.
Repurposing can make a huge contribution to the UK’s drive to net-zero, potentially generating multibillion-pound savings across carbon capture and storage (CCS) and hydrogen schemes which would otherwise require new equipment.
Operators with fields six years from cessation of production will be asked to use the new tool to identify which pieces of kit could be given a new lease of life.
This process adds structure and consistency to the assessment of North Sea repurposing potential, helping industry capitalise on opportunities.
In cases where there are no realistic alternatives, it will enable decommissioning work to progress without unnecessary delays.
The tool will initially be sent to 20 companies operating a total of 120 fields which are nearing, or have reached, the end of their production lives, and therefore meet the criteria.
The NSTA will review their submissions, cross-check against our own data, and work with operators to explore options in detail and help overcome any barriers to repurposing.
Examples of multi-asset repurposing plans can already be found in the UKCS. Eni intends to reuse and repurpose existing pipelines and platforms for its Liverpool Bay CCS project, part of the HyNet CCS and hydrogen scheme.
Initial analysis suggests that opportunities for repurposing platform topsides, jackets and subsea systems for decarbonisation projects are likely to be limited. Removal and onshore dismantling, or cleaning up and leaving in-situ, will continue to be the right option for most infrastructure once production ends.
Pipelines are the real prize, and they are being prioritised. NSTA analysis identified more than 100 which could be suitable for CCS or hydrogen projects. Finding a new life for just half of them would generate estimated savings of about £7 billion. Repurposing assets would also reduce decommissioning costs, which is good news for both industry and the Exchequer.
The NSTA is increasing the volume and quality of pipeline data it collects and intends to make as much information available as possible to stimulate repurposing projects. It is part of the wealth of high-quality data and digital services provided to industry by the NSTA to assist a range of UKCS operations, from exploration to decommissioning – as well as the energy transition.
Last year the new Decommissioning Strategy was published, which highlighted the importance of data transparency to help foster a competitive and sustainable decommissioning market. This was followed up with the Decommissioning Data Visibility Project, launched in November 2021 to give the supply chain a clearer picture of future activities.
Pauline Innes, Head of Decommissioning at the NSTA, said:
“The NSTA is committed to supporting industry in embracing decommissioning and repurposing as vital tools in driving the UK’s energy transition.
“Repurposing makes sound business sense from a cost perspective, and it’s also good from an environmental point of view – helping operators fulfil their North Sea Transition Deal pledges to lower emissions and guide the country to net zero.”
Notes to editor:
More information on repurposing, and the screening tool, can be found here: North Sea Transition Authority (NSTA): Repurposing - Decommissioning (nstauthority.co.uk)
Our Energy Integration Project highlighted opportunities to repurpose oil and gas infrastructure for hydrogen and CCS projects. It also found that the UKCS could contribute 30% towards the UK’s net-zero target, mainly through CCS and hydrogen, rising to 60% with the addition of wind, wave and tidal developments.
The North Sea Transition Deal commits industry to reduce emissions from production operations by at least 50% by 2030, against a 2018 baseline, on the path to net zero by 2050.
For more information contact:
Tel: 07776 548196