UK-based oil and gas company EnQuest plans to develop a low-cost carbon megastore.
The facility would initially be capable of receiving and storing up to ten million tonnes of CO2 per annum from emitters in Britain, Europe and beyond.
The firm also has its eye on green hydrogen opportunities.
In its latest operations update, the group said it continued to progress innovative proposals to harness local renewable power and Sullom Voe Terminal’s advantaged location in Shetland to offer robust and commercially-attractive electrification solutions to facilitate new asset developments in the North Sea and to support UK energy security.
It added: “EnQuest is also exploring opportunities to aggregate and use the excess energy produced by the wind power from onshore and offshore wind farms being developed near the Sullom Voe site to produce green hydrogen and derivatives, which could help to decarbonise a number of industries, both locally and globally.”
Chief executive Amjad Bseisu said that EnQuest had continued to deliver strong operational performance across its operated portfolio during the early part of the year, with production to the end of April above the top end of 2023 guidance.
Production enhancement
He added: “Production enhancement at Magnus is continuing, following the successful execution of our 2022 planned shutdown and well programme, including the drilling of North West Magnus well.”
The company has operations in the UK North Sea and Malaysia.
Average group production in the last four months was 47,725 barrels of oil equivalent per day (boepd).
Average net production this year is expected to be between 42,000 boepd and 46,000 boepd.
The CEO also said EnQuest was also making good progress in respect of its new energy and decarbonisation plans at Sullom Voe Terminal.
Carbon-storage licences
He went on: “I was very pleased to receive the offer of four carbon-storage licences as part of the first round of UK sequestration licences issued by the North Sea Transition Authority.
"In response to changes in the UK Energy Profits Levy, we are optimising our capital allocation by prioritising organic investments with quick pay-backs while remaining focused on deleveraging and pursuing accretive M&A opportunities.”