Victory gas field : Shell UK takes FID to boost Britain’s energy resilience

Shell U.K. Limited (Shell UK) has made a decisive move in the energy sector by taking a final investment decision (FID) on the Victory gas field located in the UK North Sea, approximately 47 km north-west of the Shetland Islands. This significant investment is poised to reinforce Britain’s energy independence and contribute to domestic gas production for homes, businesses, and power generation.

The Victory gas field will be developed with a single subsea well, which will be connected to the existing infrastructure of the Greater Laggan Area system through a new 16 km pipeline. This strategic development aligns with the UK’s efforts to sustain and enhance its energy resources.

Simon Roddy, Shell UK Upstream Senior Vice President, emphasized the importance of this venture, stating, “The UK North Sea is a critical national resource, providing a steady supply of the fuels people rely on today and strengthening the country’s energy security and resilience.” He further highlighted the necessity of continued investment to balance the UK’s declining domestic production against its rising demand for oil and gas.

According to the North Sea Transition Authority, only 38% of the UK’s gas consumption in 2022 was domestically produced, with the rest being imported. The Victory field, expected to become operational in the middle of the decade, is projected to reach a peak production capable of heating approximately 900,000 homes per year, equating to around 150 million standard cubic feet per day of gas.

The gas from Victory will be processed onshore at the Shetland Gas Plant before being transported to the UK mainland and integrated into the National Grid at St Fergus. Notably, Shell UK is also contributing to the development of the Acorn Carbon Capture and Storage project in the same region.

The environmental impact of the Victory project is mitigated by its connection to existing infrastructure, resulting in lower operational emissions compared to many current UK North Sea gas fields. This project is part of Shell’s Powering Progress strategy, which aims to balance the provision of essential energy today with the development of a low-carbon energy system for the future.

In a significant move last November, Shell UK completed the acquisition of Corallian Energy Ltd, securing a 100% interest in the P2596 Victory license to develop gas West of Shetland through the Victory gas field. This acquisition is a testament to Shell UK’s commitment to being a major investor in the UK energy system, complementing their ongoing projects in electric vehicle charging, floating offshore wind, and carbon capture and storage.