Oil giant BP scraps plans for £500m gas plant in Shetland
The British firm twice delayed plans for the gas sweetening facility at Sullom Voe.
Oil giant BP has scrapped plans for a £500m gas processing plant in Shetland, STV News has learned.
The British firm twice delayed work on the facility at Sullom Voe which would have served the Clair and Schiehallion fields.
Around 300 workers were expected to have been involved in its construction and it would have employed 30 people.
BP said it may instead expand the gas sweetening capabilities of its existing plant at the Sullom Voe Terminal.
The company shed 600 jobs earlier this year, then around 20% of its total North Sea workforce.
A spokeswoman said: "We remain committed to ensuring that Sullom Voe 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 Sullom Voe and maintaining the existing offshore sour gas 'scavenging' capability on Clair and Schiehallion.
"Construction of the originally envisaged new SVGS plant at Sullom Voe Terminal will not now proceed."