ENGIE E&P UK announces first gas from Cygnus Southern North Sea field securing 5% of UK gas production

15 Dec 2016

ENGIE E&P UK Limited is pleased to announce that first gas from the Cygnus development has been exported to the Bacton gas terminal in North Norfolk.

Cygnus, located in licence areas P1055 & P1731, 150 kilometres off the coast of Lincolnshire, is expected to contribute 5% of UK gas production – supplying sufficient gas to heat the equivalent of 1.5 million UK homes. The project added approximately £1.3 billion to the UK economy and supported nearly 5,000 jobs during its five year development period.

Ruud Zoon, Managing Director of ENGIE E&P UK Limited commented: "I’m very proud of the strong collaboration on Cygnus between partners ENGIE E&P, Centrica and Bayerngas. Together we have successfully achieved first gas production and export from the Cygnus field. Over 5000 colleagues, contractors and suppliers have contributed to this landmark development and, most importantly, have maintained an excellent safety record since the project was approved in 2012."

"First gas from Cygnus represents a significant boost to the UK’s long term energy security, with an estimated production life exceeding 20 years. Furthermore, with over 80% of the contract work secured by British businesses – including fabrication yards in Hartlepool, Methil and Burntisland – it is a showcase for the technical and commercial excellence of the UK oil and gas supply chain."

The Cygnus complex, with four platforms, a total of 10 wells and two subsea structures, serves an estimated field size of 250 square kilometres from which it is expected to achieve plateau production of 250 million cubic feet per day.

Bayerngas UK Managing Director, Gerry Harrison added: "ENGIE E&P, Centrica and Bayerngas have worked closely together on this project since 2010. As you will hear from the partnership, most of the numbers related to this project are very large, for instance: investment, man hours, production levels, reserves, longevity. But perhaps the most important numbers are very small; our priority has always been safety and I am proud that Bayerngas has collaborated on a project with minimal Lost Time Incidents. We are looking forward to high levels of stable production and thank all those involved in Cygnus for their hard work and dedication."

Chris Cox, Managing Director of Centrica’s Exploration & Production business, continued: "The Cygnus field is hugely important to the country’s energy supply, so we are proud that gas is now flowing from the field and into homes and businesses across the UK. This milestone was only possible thanks to the hard work and collaboration of the teams across Centrica, ENGIE E&P, Bayerngas and our supply chain partners."

The partners are evaluating further opportunities in the Greater Cygnus area with the aim of bringing additional volumes through Cygnus when capacity becomes available.

Andy Samuel, Chief Executive of the Oil & Gas Authority, concluded: "ENGIE E&P, Centrica and Bayerngas have demonstrated an impressive collaborative effort in achieving first production from Cygnus. It represents a significant milestone for the Southern North Sea, delivering new volumes through existing infrastructure, utilising the UK’s skilled supply chain and helping create the right conditions for further developments. This is set to continue with the next phase of development from Cygnus Bravo which will bring additional capacity on stream in the future to deliver MER1 UK."

Equity interests are operator ENGIE E&P UK Limited (38.75%) and partners Centrica (48.75%) and Bayerngas (12.5%).


Media contacts

The BIG Partnership
Jackie Robinson Phone: +44 (0) 7711 281915 Email: jackie.robinson@bigpartnership.co.uk
Gayle Grant Phone: +44 (0) 1224 253808 Email: gayle.grant@bigpartnership.co.uk

Justin Heath Phone: +44 (0) 203 122 1721 Email: justin.heath@gdfsuezep.co.uk


Notes to editors

To mark the occasion of first gas, ENGIE E&P has launched a virtual reality tour of Cygnus which is available for iOS & Android devices; please search your relevant app store for ‘Cygnus offshore’.

Photography is also available by contacting BIG (above).

About Cygnus
The Cygnus gas field was first discovered in 1988 by Marathon Oil. ENGIE E&P’s subsequent subsurface data analysis, innovative geological thinking and leading-edge geophysics enabled this discovery to become the largest gas field development in the Southern North Sea in over 25 years.

The development was sanctioned in 2012, following the UK Government’s decision to introduce a field allowance for new large gas fields in shallow water. The field is located 150km off the coast of Lincolnshire in depths of less than 25m. Cygnus holds estimated 2P (proved and probable) reserves of approximately 110 mmboe (million barrels of oil equivalent).

The development consists of four platforms including two drilling centres. The central ‘Alpha’ complex comprises three bridge linked platforms: a wellhead platform with 10 drilling slots; a processing and utilities unit; and a quarters platform with the central control room. The second location is an unmanned satellite wellhead platform (Bravo), with a further 10 well slots, approximately 7km NW of Alpha. Gas is exported via a 55km pipeline connecting Cygnus to the Esmond Transmission System (ETS) pipeline, which terminates at Bacton in Norfolk.

The meaning of Cygnus is the Latinized Hellenic (Greek) word for swan.

ENGIE E&P has a global portfolio of exploration and production interests, with 2P reserves of 699.2 MMboe; of which 76% is natural gas and 24% is liquid hydrocarbons. The Group holds 343 exploration and/or production licences, 7 of which are in the UK, (and 56% of which are operated by ENGIE E&P)2. ENGIE E&P is owned by ENGIE Group (70%) and China Investment Corporation (30%).

ENGIE develops its businesses (power, natural gas, energy services) around a model based on responsible growth to take on the major challenges of energy’s transition to a low-carbon economy: access to sustainable energy, climate-change mitigation and adaptation and the rational use of resources. The Group provides individuals, cities and businesses with highly efficient and innovative solutions largely based on its expertise in four key sectors: renewable energy, energy efficiency, liquefied natural gas and digital technology. ENGIE employs 154,950 people worldwide and achieved revenues of €69.9 billion in 2015. The Group is listed on the Paris and Brussels stock exchanges (ENGI) and is represented in the main international indices: CAC 40, BEL 20, DJ Euro Stoxx 50, Euronext 100, FTSE Eurotop 100, MSCI Europe, DJSI World, DJSI Europe and Euronext Vigeo (World 120, Eurozone 120, Europe 120 and France 20). To know more, please visit www.engie.com.

About Centrica
Centrica plc is an international energy and services company. Everything it does is focused on satisfying the changing needs of its customers. Centrica supplies energy and energy-related services to over 28 million customer accounts in the UK, Ireland and North America, through brands such as British Gas, Direct Energy and Bord Gais Energy, supported by 12,000 engineers and technicians. Through its Distributed Energy & Power business Centrica offers integrated energy solutions for commercial and industrial customers, including flexible generation, energy management systems, and battery storage. Centrica’s Energy, Marketing & Trading business operates in LNG trading, optimisation and risk-management for customers. Exploration & Production continues to play an important role Centrica’s portfolio, focused on the North Sea and East Irish Sea.

About Bayerngas
Bayerngas UK is part of the Bayerngas Norge Group which is focussed on exploration, development and production in the UK, Norway and Denmark. The Group is owned by utility companies in Germany (Stadtwerke Munchen and Bayerngas GmbH) and Austria (Tigas-Erdgas Tirol GmbH). The Group has production interests in 3 fields in the UK (Babbage, Clipper South and Cygnus) 2 fields in Norway (Trym, Vega) and an additional field is under final commissioning in Norway (Ivar Aasen). Activity is managed from offices in London, Oslo and Copenhagen with a combined staff of approximately 65 people.

1 The OGA’s strategy for Maximising Economic Recovery
2 Data as at 31 Dec 2015