Assets

HGS

Our newest platform and pipeline transporting natural gas from the Southern North Sea to the Easington terminal in East Yorkshire
Infrastructure
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The HGS infrastructure comprises the Tolmount platform and the HGS pipeline. The Tolmount platform is a Normally Unattended Installation (NUI) which is remotely operated from the onshore Easington gas terminal control room. The minimal facilities platform includes:

  • Wellheads and flowlines
  • Production separator
  • Produced water treatment package
  • Sphere launcher
  • Power generation units
  • Helideck

The HGS pipeline is a 48km, 20 inch diameter gas export pipeline transporting gas from the Tolmount and Tolmount East fields to the Easington terminal for processing. The pipeline capacity accommodates 300 million standard cubic feet of gas per day. During construction of the HGS project, modifications were made at Easington to enable it to receive and process gas from the HGS infrastructure.

Investment in additional risers and J-tubes enables lower field development and tie-in costs for future projects, giving HGS the potential to become a material future infrastructure hub, and enable production to continue in this region of the North Sea for the next 20 years and beyond.

Tolmount and HGS
Customers
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Maximising economic recovery (MER) relies on upstream and midstream operators working closely together to stimulate future investment.

HGS supports existing customers (Harbour Energy and Dana Petroleum) to enable further development of the Greater Tolmount Area. We are also keen to attract new customers who have potential developments in the surrounding area.

Every aspect of HGS has been planned to accommodate third party access, from the commercial structure and principles we have put in place, to the infrastructure itself. The HGS platform and pipeline have been designed with overcapacity in mind, with investment in additional risers and J-tubes to enable lower field development and tie-in costs for future new customers.

This forward thinking approach to HGS gives it the potential to become a future infrastructure hub that will enable production in this region of the North Sea to continue for decades to come.

Ownership, Operatorship & Partnerships
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Harbour Energy and Dana Petroleum each have a 50% interest in the Greater Tolmount Area.

Harbour is the license operator responsible for the Tolmount Field Development Plan, licence and wells obligations.

Kellas and Dana jointly funded, constructed and own the HGS infrastructure in equal shares, with Kellas assuming operatorship and having contractual responsibility to operate the infrastructure.

Kellas appointed ODE Asset Management Limited (ODE AM) as Operating Partner for the HGS infrastructure. ODE AM provides the resources to manage day-to-day operation of the HGS platform and pipeline.

OWNERSHIP, OPERATORSHIP & PARTNERSHIPS

Operator: Humber Gathering System Limited (wholly owned by Kellas Midstream)

Owners (equity): Kellas Midstream (50%), Dana Petroleum (50%)

Operating Partner: ODE Asset Management

Upstream Joint Venture: Harbour Energy (50%), Dana Petroleum (50%)

Licence Operator: Harbour Energy 
 


An Innovative Partnership

Premier (now Harbour) acquired its interest in the Greater Tolmount Area, which includes the Tolmount Main gas field, via its $120m acquisition of E.ON’s UK assets in 2016.

Premier’s objective was to maximise economic recovery via an area development solution balanced with a desire to reduce its upfront capital exposure. Premier looked at several ways of doing this, including farm out, vendor funding and infrastructure funding.

Ultimately, Premier selected a midstream joint venture which would build and own the infrastructure – the first time a greenfield UK pipeline and platform infrastructure has been funded by an infrastructure fund, but an extension of the financing models Premier deployed with its FPSO developments.

Premier, Kellas and Dana collaborated to develop an appropriate commercial framework as well as an appropriate risk-reward profile to ensure upstream and midstream investors were aligned.

In Q1 2021 Premier Oil merged with Chrysoar to become Harbour Energy.
 

This type of infrastructure partnership approach is unique and differs from the traditional upstream model where the operator funds both the field development and the infrastructure.

By putting in place innovative commercial agreements that enabled open discussion and encouraged information sharing, the HGS infrastructure ownership and operatorship was separated from the Tolmount Main field, significantly reducing Premier’s upfront capital exposure, allowing the project to be sanctioned.

Working near the HGS Infrastructure
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Kellas Midstream is committed to managing the HGS infrastructure safely and responsibly.

If you are planning to work near the HGS pipeline, please contact Stefan Kent, Asset Support Manager, Kellas Midstream Limited, 6th Floor, The Capitol, 431 Union Street, Aberdeen AB11 6DA, tel: +44 (0) 1740 768525 for advice and to notify them of any work you are planning in the vicinity.

Following these steps will help everyone stay safe when operating near the HGS infrastructure.

Download our HSSE policy

CONTACT US

Kellas Midstream Limited

6th Floor, The Capitol
431 Union St
Aberdeen
AB11 6DA

Tel: +44 (0) 1224 084520


Pipeline Emergency

To report a pipeline emergency please call +44 (0)1642 546404 and ask for the Operations team.