Shell Makes Strategic Investment in UK North Sea's Victory Gas Field

Shell UK has reached a significant milestone by making a final investment decision (FID) on the Victory gas field located in the UK North Sea, positioned approximately 47 kilometers northwest of the Shetland Islands. This strategic move, once the field becomes operational, is poised to contribute to the sustenance of domestically produced gas, catering to the energy needs of homes, businesses, and power generation in Britain.

Simon Roddy, Senior Vice President of Shell UK Upstream, emphasized the critical role of the UK North Sea as a national resource, serving as a reliable source of fuels that are integral to meeting the country's energy demands and enhancing energy security. He highlighted the ongoing necessity for continued investment to uphold domestic production, particularly in light of the declining pace of production compared to the demand for oil and gas in the UK.

Statistics from the North Sea Transition Authority reveal that only 38% of the UK's gas consumption in 2022 was sourced domestically, with the remainder being imported. In response to this scenario, the Victory gas field is anticipated to commence operations in the mid-2020s, aiming to produce sufficient gas at its peak to heat nearly 900,000 homes annually. This translates to approximately 150 million standard cubic feet per day of gas or roughly 25,000 barrels of oil equivalent per day. The majority of the recoverable gas from the Victory field is expected to be extracted by the end of the decade.

The extracted gas from the Victory field will undergo processing onshore at the Shetland Gas Plant before being transported to the UK mainland through pipelines, ultimately entering the National Grid at St Fergus. This aligns with Shell UK's broader involvement in advancing the Acorn Carbon Capture and Storage project, contributing to the company's commitment to a sustainable and low-carbon energy system.

A noteworthy aspect of the Victory project is its tie-back to existing infrastructure, resulting in operational emissions that are lower compared to many current gas fields in the UK North Sea. This strategic choice aligns with Shell's Powering Progress strategy, which emphasizes delivering greater value with reduced emissions. The project reflects a dual commitment to meeting current energy needs while contributing to the development of a low-carbon energy system for the future.

The acquisition of a 100% interest in Corallian Energy Ltd in November 2022 solidified Shell UK's position in the Victory gas field development. The acquisition, specifically encompassing the P2596 Victory license for gas development West of Shetland, underscores Shell's dedication to being a significant investor in the UK energy system. This commitment is complemented by the company's engagement in diverse low-carbon and renewable projects, spanning electric vehicle charging, floating offshore wind initiatives, and carbon capture and storage.