Historical archive

Ormen Lange and Langeled put forward to the Storting

Historical archive

Published under: Bondevik's 2nd Government

Publisher Ministry of Petroleum and Energy

Press release

No.: 13/04
Date: 27.02.2004

Ormen Lange and Langeled put forward to the Storting

The Norwegian government submitted a Proposition to the Storting today on the development of the Ormen Lange field and a new transportation system – Langeled.

- The development of Ormen Lange and Langeled involve large investments and will give a significant contribution to the activity level on the Norwegian continental shelf. It will also strengthenNorway's position as one of the main suppliers of gas toEurope. I am therefore pleased to put forward this proposition for the Storting, says Einar Steensnæs, Minister of Petroleum and Energy.

Ormen Lange, located in the Norwegian Sea, is the largest gas discovery on the Norwegian continental shelf after the Troll field. Recoverable resources are estimated to 397 billion cubic metres (bcm) of gas and 29 million cubic metres (mcm) of condensate. The field will be developed with a sub-sea solution combined with an onshore processing plant at Nyhamna in the county Møre and Romsdal. Start-up of production is planned to be October 2007. Investments in the Ormen Lange project are estimated to 46,5 billion NOK (approximately 5,3 billion Euro).

Gas from the Ormen Lange field will be transported through the pipeline Langeled, from the process plant at Nyhamna via a platform on the Sleipner field in the North Sea to Easington in the UK. Investments in Langeled are estimated to 19,4 billion NOK (approximately 2,2 billion Euro).

The production of gas from the field is expected to be approximately 20 bcm pr. year, which is equivalent to the total annual energy demand in Norway. The development will be a major contribution to Norwegian gas exports and make it possible to increase the gas exports from a level of 72 bcm in 2003 to a level above 110 bcm pr. years by 2010.

The Ministry received the development plans for Ormen Lange and Langeled 4 December 2003. Norsk Hydro Produksjon a.s is operator for Ormen Lange during the development phase. A/S Norske Shell will be the operator during the production phase. Norsk Hydro Produksjon a.s will be operator for Langeled in the development phase, while Gassco AS will be pipeline operator.