Friday, November 20, 2009

Shell & Mercury together working to secure our energy future



Corrib Natural Gas General Overview
The Corrib gas project is one of the most significant engineering projects ever undertaken in Ireland. Located some 83 kilometers off the northwest coast of County Mayo, this medium sized gas field will be developed as a subsea ‘tie-back’ facility, connected by a pipeline to an onshore processing terminal located approximately 9 kilometers inland. Mercury Engineering is currently undertaking the complete Mechanical, Electrical and Instrumentation services on the new Bellanaboy On-Shore Gas terminal for Shell. The Corrib gas field was discovered in 1996, located 83km off the coast of Co. Mayo. It is a medium sized gas field – smaller than Kinsale. The Corrib gas reservoir is located 3kms below the sea bed in 350m of water.

At a glance;
• Corrib will supply up to 60% of Ireland’s gas needs at peak production
• 50% of Irelands electricity is generated from natural gas
• Over 1500 jobs have been created during the construction phase
• It will provide 130 permanent jobs in the locality
• Erris Development Fund launched 2009 with a €5m budget for 2009-2012
• Extensive community investment programme – spend in excess of €600k in 2007/8


Securing our Energy Future
Ireland is at the end of a very long pipeline. We import almost 95% of our gas supplies from Europe via an interconnector pipeline from the UK. The importance of securing Ireland’s energy supply has never been greater. Renewable energy sources will take many years to develop; therefore, as energy consumption increases, bringing indigenous gas supplies to market has become increasingly more important. Once in production, gas from the Corrib field will be distributed to homes and businesses throughout Ireland via the Bord Gáis Eireann (BGE) national grid. As a result of the Corrib project the BGE distribution network is being extended to an additional 12 towns in County Galway and County Mayo.


The Corrib project is made up of four parts: the offshore operations including the wells and subsea facilities, the offshore section of pipeline, the onshore section of pipeline and finally the gas processing plant at Bellanaboy Bridge, County Mayo.

1. Bellanaboy Bridge gas terminal
Once it comes ashore, the gas will be processed or dried at the terminal at Bellanaboy by removing liquids so that it is suitable to flow into the Bord Gáis Eireann pipeline network. The terminal, still one of the largest construction sites in the country, is now over 75% complete.

2. Onshore pipeline
Following a recommendation from Mr. Peter Cassells in his 2006 mediation report, Shell E&P Ireland Limited agreed to modify the route of the onshore pipeline. The rerouting process involved 11 months of public consultation. The new route is twice as far from housing as the originally approved route and half the original design pressure.



3. Offshore development programme
Preparatory works for the offshore programme, which involves laying 83 kilometers of pipeline from Glengad to the Corrib field, began with construction of the landfall site in April. Once the necessary near shore works have been completed, the offshore pipeline will be welded together onboard the Solitaire pipe lay vessel and will be laid on the seabed.

4. Wells and subsea facilities
The offshore equipment for Corrib has been placed on the seabed in a water depth of about 350 meters using remotely operated vehicles (ROVs). To date fi ve wells have been drilled and made ready for production.


Corrib controversy
The Corrib gas pipeline was at the centre of much controversy in 2005 when a small number of local landowners refused to allow Shell E&P Ireland Limited (SEPIL) to proceed with construction work relating to the onshore section of pipeline.

In an effort to resolve the situation, the Irish Government appointed international consultants, Advantica, to conduct an independent safety review of the onshore pipeline. In their report published in May 2006, Advantica concluded “proper consideration was given to safety issues in the selection process for the preferred design option and the locations of the landfall, pipeline and terminal”.
The Corrib Gas Partners accepted the findings of the Independent Safety Review and committed to fully adhering to all recommendations which included limiting the pressure in the onshore section of the pipeline to 144 bar - less than half the original design pressure of the pipeline.

Also in 2005, the Irish Government appointed an independent mediator, Mr Peter Cassells. His report recommended that the route of the onshore section of the Corrib Gas Pipeline be modified. The Corrib Gas Partners again accepted this recommendation and appointed RPS consultants to identify a suitable modified route. A new route for the onshore pipeline was identified following a 14-month selection process, which involved 11 months of public consultation. The modified route is twice as far from occupied housing compared to the original route.

In 2008, local fishermen raised concerns regarding the treated produced water leaving the terminal and entering the bay where they fish. This produced water will be cleaned to the highest standards and our plans had full regulatory approval and are consistent with the highest international and EU environmental standards. Nevertheless, following discussions with the fishermen, the Corrib gas partners agreed to discharge the water at the Corrib field 83km offshore at an additional cost to the project of several million euro.
In these three instances, the Corrib Gas Partners have shown a real willingness to respond to genuine community concerns. We believe that we have done everything reasonable to address issues raised by local community and will continue to listen their concerns.

In November 2008, the Irish Government established a Community Forum for Development in North West Mayo to bring together politicians, community groups, protesters and Shell representatives. While some local groups have not yet participated in the forum, the initiative did lead to face to face talks between Government ministers, Shell and two community groups; Pobal Chill Chomain and Pobal le Chéile.
We continue to seek dialogue and a way forward that allows us to complete the project – which has the necessary legal approvals and community support and is in the wider interests of Irish society.


Community benefits
In order to demonstrate our commitment to making sure the project benefits the local community, the Corrib Gas Partners have launched various social investment initiatives including a 3rd Level Scholarships Programme, a significant Local Grants Programme and the Erris Development Fund – a long-term fund that will operate throughout the life of the Corrib gas field.


In late 2007, Goodbody Economic Consultants carried out an assessment of the project. They concluded that Corrib would create over 800 jobs during the construction phase and approximately 130 permanent jobs would be created in the local area thereafter.

As a result of the Corrib project, Bord Gais Eireann plans to connect 12 towns in Mayo and Galway to the national gas grid.



Information taken from www.shell.ie