The oil and gas group Shell UK has reached a final investment decision (FID) on the Victory gas field in the UK North Sea, that is expected to produce approximately 150 mcf/d (4.2 mcm/d or 1.5 bcm/year) at its peak. Located at approximately 47 km north-west of the Shetland Islands, the project will feature a single subsea well which will be tied back to existing infrastructure of the Greater Laggan Area system, using a new 16 km pipeline. The extracted gas should be processed onshore at the Shetland Gas Plant before being piped to the United Kingdom mainland to enter the National Grid at St Fergus (northeastern Scotland).
According to the North Sea Transition Authority, 38% of the UK’s 2022 gas consumption was domestically produced, while the rest was imported. The UK has large oil and gas reserves, mainly located in the North Sea: 339 Mt for crude oil and 247 bcm for gas (at end-2022) that are declining rapidly. In 2023, the UK awarded 27 new licenses for oil and gas exploration and production in the North Sea, prioritizing areas that can quickly go into production.