Denmark’s Largest Gas Field Gets $3.35 Billion Investment from Danish Underground Consortium
Tyra, Denmark’s largest gas field, will get a much-needed investment from the Danish Underground Consortium. This infusion of cash comes after a sinking chalk reservoir has left platform decks 16 feet closer to the sea than they were three decades ago.
Being responsible for nearly 90% of the nation’s domestic gas supply, there is good reason to pursue this investment which will allow the field to continue processing for at least two and a half decades. It is also a sign that Denmark and other North Sea countries won’t be giving up on the oil industry nor the belief in European gas demand being able to sustain them.
What Will the Investment Pay For?
The vast majority of the money, around $2.7 billion, is earmarked for infrastructure improvements to address the sinking chalk reservoir. The remaining money will go towards deactivating portions of the current infrastructure.
Who Operates the Field?
Maersk Oil operates the field for the Consortium, which includes Maersk, Shell, Nordsøfonden and Chevron gas companies.
What are the Benefits to Denmark?
One of the biggest advantages to the Danish people is the job creation and job loss prevention that the investment will enable. Work will be created during the construction period and save many jobs that would have been lost if the field had closed.
Along with this, Denmark will also see tax revenues and, if additional gas reserves are found in Danish waters, the country will be able to process them much more cheaply. There is also a cost saving associated with not having to deactivate the entire field now.
Denmark’s energy minister, Lars Christian Lilleholt spoke of the benefits to the entire industry, saying “The full reconstruction of Tyra is vital to the development of the Danish North Sea oil and gas sector, not just to Maersk Oil-but to many companies relying on Tyra as a central gas hub.”
The redevelopment will cause a temporary shut-in December 2019 with production slated to be restored in July 2022.