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Bayerngas Norge invests in new oil terminal in Fredericia, Denmark

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The Hejre field development requires an extention of the oil terminal in Fredericia. Together with Dong as operator, Bayerngas Norge will invest 800 mill DKK  in the oil terminal. The investment will lead to 20 new permanent jobs in the Danish city.

“DONG Oil Pipe A/S has made final decision to invest DKK 2 billion in a reconstruction of the oil terminal in Fredericia. The rebuilding means that the oil terminal in the future will be able to receive live oil e.g. oil containing high share of gas (light ends consisting of C4-). The investment should be seen as a socio-economic good solution for Denmark as it mean that gas products that today is being pumped back into oil wells or is being used as fuel for turbines and generators will be processed and sold in the market.

The project was triggered by the decision to develop the Hejre field. According to the Danish Pipeline Act, all Danish field are required to export its liquids through the Oil Pipeline owned and operated by DONG Oil Pipe A/S. DONG Oil Pipe A/S on the other hand is obliged to serve all Danish fields and if necessary make the required modifications to the Oil Pipeline. Establishment of a LPG separation plant as part of the Oil Pipeline, for treatment of the Hejre Oil which contain considerable amounts of gas, was therefore necessary.

Bayerngas Norge, through its two Danish subsidiaries Bayerngas Petroleum Danmark AS and Bayerngas Danmark ApS, holds 40% ownership share in the Hejre field while DONG E&P holds the remaining 60%. The Hejre partners will, according to the Danish Pipeline Act, have to reimburse the total costs of establishing the LPG separation plant through future tariff payments on their LPG volumes extracted in the stabilization plant. Production from other fields requiring stabilization (eg Solsort) will relieve the Hejre field from some of its tariff obligation.

It is expected that the conversion of the oil terminal in Fredericia will create 150-200 jobs, while the new oil facility on a permanent basis will create 20 permanent jobs for technicians and maintenance staff.”