Anacala Midstream has won a multi-million pound contract to process gas from Zennor Petroleum’s Finlaggan field in the North Sea.
The deal will see the gas processed through Ancala’s Scottish Area Gas Evacuation (SAGE) terminal in St Fergus near Peterhead.
Ancala said the deal will ensure the pipeline system remains a “competitive option” for UK and Norwegian developments in the North Sea through to the mid-2030s.
Finlaggan is 100% owned by Zennor Petroleum and is expected to produce 30million barrels of oil equivalent.
First production is due in the fourth quarter of 2020.
The central North Sea development will be tied back to the Britannia platform, currently operated by ConocoPhillips, 12miles away.
Ancala Midstream acquired the SAGE system in 2017 and the firm said it has since increased its contracted volumes of gas by 250 billion cubic feet.
The 200-mile pipeline system and terminal serves multiple fields across the UK and Norwegian sectors.
Chief executive Jim Halliday said: ““We are delighted to have secured this long-term contract to provide processing services to the Finlaggan field.
“We have worked closely with Zennor throughout, creating an offer that has facilitated the optimum development of the field and delivery of the Oil and Gas Authority’s objective of maximising economic recovery from the North Sea.”
In April, Zennor said it had “very encouraging results” from its subsea production wells.
Managing director Martin Rowe said: “We greatly appreciate the support we have received from the Ancala Midstream team in putting the SAGE processing agreement in place for the Finlaggan field, which is a key element of our growing portfolio.”