Scotland business

BP scraps Sullom Voe gas processing plant plans

Sullom Voe terminal Image copyright BP
Image caption The plant was due to be built at the Sullom Voe terminal in Shetland

BP has confirmed it has scrapped plans for a new gas sweetening plant at Shetland's Sullom Voe terminal.

The company announced in March the project had been put on hold due to the current business climate.

It would have employed about 300 workers in the construction phase and created around 30 full-time jobs.

A spokesman for BP said the firm now intended to focus on enhancing the gas sweetening capability of its existing plant at Sullom Voe.

He added: "We remain committed to ensuring that Sullom Voe Terminal has the necessary facilities to reliably support long-term oil and gas production from fields to the west and east of Shetland.

"Ensuring reliable and 'fit for purpose' gas sweetening capability is an important element of this.

"Given the current business climate and as a result of revised west of Shetland sour gas production modelling work, the Sullom Voe Gas Sweetening (SVGS) partners have concluded that a more cost-effective solution to meeting future gas sweetening needs for the region is possible.

"Consequently the revised SVGS project will focus on enhancing (and potentially expanding) the gas sweetening capability of the existing plant at SVT and maintaining the existing offshore sour gas "scavenging" capability on Clair and Schiehallion."

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