GASSCOENGLISH Gas pipeline at Kårstø. Contents Accepting responsibility, delivering as agreed page 4 Motorways for Norwegian gas page 6 Gas administrator page 11 Kårstø’s key role page 13 Kollsnes page 15 Value chain for gas page 16 Receiving terminals in Europe page 18 Riser platforms – key hubs page 25 Skanled – eastward bound page 26 Facts about gas page 28 The Gassled joint venture page 30 Facts about Gassco page 30 Produced: June 2007 Design: Steinar Iversen Reklamebyrå Photos: Øyvind Sætre, Henderyckx, Hans-Peter Heikens, Eirik Dankel Text: Ragnar Åsland English translation: Rolf E Gooderham Printer: HBO Accepting responsibility, delivering as agreed We at Gassco take responsibility for transporting gas safely and efficiently from the Norwegian continental shelf (NCS). Our aim is 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 control room in Karmøy local authority north of Stavanger. European demand for Norwegian gas is steadily rising. Norway ranks as the world’s third largest exporter of pipeline gas, and currently supplies more than 15 per cent of all natural gas consumed in OECD Europe. This proportion is likely to increase over the next few years. Norway’s ability to deliver gas is significant for the daily lives of millions of people. Its reputation as a reliable supplier would be threatened if these deliveries failed to arrive. Even minor shutdowns on the NCS affect a Europe increasingly dependent on gas imports. So high regularity is essential for maintaining the position of Norwegian gas in a growth market. Ensuring that the companies which export this commodity and their European customers view the transport system as reliable is commercially critical for us at Gassco. That puts reliability at the core of our business. Our offices at Bygnes. Transport network. Capacity in the integrated transport system, which comprises pipelines, processing facilities, platforms and receiving terminals in continental Europe and the UK, has increased in recent years. It will be up to 350 million standard cubic metres (scm) of gas per day by 31 December 2007. The latest delivery record was set on 11 December 2006, when more than 300 million scm of gas was produced and delivered from the NCS in the course of a single day. Operatives in Dornum. Health, safety and the environment. Our goal at Able people at every stage. Despite constant Gassco is zero harm to people, the environment technological advances, our personnel and the or material assets. This zero objective reflects a expertise they possess are the primary reason conviction that all harm can be prevented by we can claim to be reliable. We are accordingly systematic and purposeful work. We have committed to having able people at every established performance indicators which show stage. It is gratifying that we can recruit new the development in our HSE results over time. The employees who help to take our company for- trend in recent years has been positive for the ward. We have a stable and well-qualified staff, activities we operate, with fewer critical incidents and regard ourselves as a change-oriented organ- or personal injuries. isation in which everyone contributes to main- taining and developing the transport system. In this way, we can safeguard Norway’s leading role as a gas supplier. Zones ANd tarIffS The integrated system for Norwegian gas transport is divided into areas, each with fixed unit prices for transport and/or processing. Gassled area A: covers the pipeline carrying rich gas from the Tampen area of the North Sea to the Kårstø processing plant. Gassled area B: covers the pipeline carrying rich gas from the Halten Bank in the Norwegian Sea to Kårstø. Gassled area C: covers the Kårstø plant. Gassled area d: covers a number of pipelines, platforms and receiving terminals for transporting dry gas from Kollsnes and Kårstø, or directly from fields, to receiving terminals in the UK, France, Belgium and Germany. Gassled area E: covers the Kollsnes processing plant. NORWAY SWEDEN DENMARK GREAT BRITAIN THE NETHERLANDS GERMANY FRANCE BELGIUM Motorways for Norwegian gas We operate a unique system for gas transport through an extensive network of pipelines which total 7 800 kilo- metres in length, as well as major industrial facilities, platforms and receiving terminals in continental Europe and the UK. PIPELINE FROM TO LENGTH dIAMETEr CAPACITY (scm/d) Haltenpipe Heidrun Tjeldbergodden 250 km 16-inch 7.0 mill Norne Gas Transport (NGTS) Norne Heidrun 126 km 16-inch 10.0 mill Åsgard Transport Åsgard Kårstø 707 km 42-inch 70.4 mill Statpipe rich gas Statfjord Kårstø 308 km 30-inch 26.7 mill Statpipe Kårstø Draupner S 228 km 28-inch 21.1 mill Statpipe Draupner S Ekofisk 203 km 36-inch 44.4 mill Statpipe Heimdal Draupner S 155 km 36-inch 30.7 mill Zeepipe Sleipner Zeebrugge 814 km 40-inch 41.9 mill Zeepipe Sleipner Draupner S 30 km 30-inch 50.0 mill Zeepipe IIA Kollsnes Sleipner 303 km 40-inch 72.0 mill Zeepipe IIB Kollsnes Draupner E 304 km 40-inch 71.0 mill Europipe Draupner E Dornum/Emden 660 km 40-inch 45.4 mill Europipe II Kårstø Dornum 650 km 42-inch 64.8 mill Franpipe Draupner E Dunkerque 840 km 42-inch 53.7 mill Norpipe Ekofisk Emden 440 km 36-inch 44.4 mill Vesterled Heimdal St Fergus 350 km 32-inch 36.0 mill Oseberg Gas Transport (OGT) Oseberg Heimdal 109 km 36-inch 41.9 mill Langeled (from 1 Oct 2006) Nyhamna Easington 1 200 km 42/44-inch 69.4 mill Tampen Link (from 1 Oct 2007) Statfjord Flags 23 km 32-inch 25.0 mill LANd-BASEd rISEr Installations also delivering natural gas to the fACILITIES PLATfOrMS transport network Kårstø gas processing complex, Norway Draupner S/E At Åsgard: Mikkel Kollsnes gas processing complex, Norway Sleipner Riser At Norne: Urd Emden receiving terminal, Germany Heimdal Riser At Statfjord: Statfjord East, Statfjord North, Snorre and Vigdis Dornum receiving terminal, Germany At Gullfaks: Tordis and Topas Dunkerque receiving terminal, France At Heimdal: Vale and Skirne St Fergus receiving terminal, UK At Jotun: Balder and Ringhorne Zeebrugge receiving terminal, Belgium At Sleipner: Sleipner East and West Motorways for Norwegian gas cont The worK done Around the clock in our control room at Bygnes north Of Stavanger is highly signifI- cant fOr our role as operator. One key job is to ensurE that customerS receivE the correct volumes. Other important tasks includE ensuring that the PrOducts we send on havE the Proper calorIfic value and the right content Of water, carbon dioxIdE and hydrogen sulphidE. In addition, our control room operatives coordinate the whole The control room is responsible for optimum operation of the daily flow of information on deliveries to the gas owners and the transport system and for achieving 100 per cent regularity. We call fields responsible for delivery. this “system operation”. Operatives in the control room at Bygnes. The receiving terminal in Dornum. One Of our roles can be comparEd in A way with controlling TrAffic in international air space. TrAffic between the pipelines is also considErable, and one Of our key jobs is to Administer the capacity Available in the TransporT system at any given time. A certain number Of booking roundS ArE held EvErY year to allocate capacity. OUr job is to accomplish this in an objectivE, non-discriminatorY and Transparent way which benefits all gas shipperS, and which contributes to the most Efficient possible utilisation Of resources on the NCS. 10 Gas administration System operation and capacity management. The 23 staff in our control room average 10 years of experience. Controlling the gas flow continues without a break around the clock. Three people work the night shift, while the day and afternoon shifts each have four operatives. Their main duties are to manage the gas flow through constant monitoring, regulate quality and ensure that the gas blend is correct. Since the various fields deliver different gas grades, these must be processed or mixed to achieve the desired quality before delivery to the buyer. Such blending allows us to deliver gas with the agreed composition virtually all the time. Our control room’s coordinatory role is exten- manner is an important and responsible job. The sive and multifaceted. In certain circumstances, value chain comprises five stages: production, we can instruct a field operator to deliver gas transport to land, processing, onward transport, for a limited period. This happens, for instance, and sales/marketing. if a field shuts down for maintenance or other reasons. We can then require another field to Production. Gas is produced from more than 30 deliver more and others to supply less. The fixed and floating installations on the NCS. control room is also involved in planning short- term shutdowns which supplement major Transport to land. Gas is piped from the NCS to scheduled turnarounds. Transport capacity de- processing facilities on land. At this stage, it is pends to some extent on the ambient water usually a blend of dry gas (methane) and natural The Bygnes control room. temperature along the pipelines, which means gas liquids (NGL – ethane, propane and butanes) that more can be sold in the cold season. Using known as rich gas. good temperature information, updated daily, and advanced computer models, we calculate the Processing. When rich gas reaches the processing daily extra capacity available for sale in the winter. plant, its pressure is reduced before the lightest Planning ship calls at Kårstø also requires careful (dry) gas and the NGL are separated in an extrac- coordination with daily gas flows.