Statoil marks gas pipeline milestone

STAVANGER, Norway, March 27 (UPI) -- Norwegian energy company Statoil said Friday it started the pioneering project of laying gas pipeline across the arctic waters of the Norwegian Sea.

The company started the process of laying the 300-mile long Polarled pipeline from the Aasta Hansteen field in the Norwegian Sea across the Arctic Circle to a gas processing plant in the northwest of the country.

Statoil said the project marks a regional milestone on several fronts. It's the first large-diameter pipeline of its kind to be placed in waters of up to 4,150 feet deep and is the first pipeline to take gas across the Arctic Circle. "Polarled will have great and strategic impact on the future development of the region," Jan Heiberg, acting director of Statoil's pipeline unit, said in a statement. "The new pipeline will open a new gas province and stimulate exploration and resource development, which will fortify Statoil's position as an exporter of gas to Europe."

Norway is among the top natural gas exporters to the European market. Natural gas discoveries last year increased by more than 240 million cubic feet.

Statoil last week reported a natural gas discovery in a pioneer well near the Aasta Hansteen field, which the government estimated holds between 175 billion and 300 billion cubic feet of recoverable natural gas. The field is one of the largest in the region and the first deepwater project of its kind in the Norwegian Sea.

The pipe laying operation from Aasta Hansteen is scheduled for August completion. The onshore processing terminal will be ready to receive natural gas by 2017.