Angus Energy on track for commissioning of Saltfleetby

(Sharecast News) - Angus Energy updated the market on installation and commissioning progress at Saltfleetby on Wednesday, with delivery and installation dates "substantially unchanged".

The AIM-traded firm said the bulk of the last skids would be arriving shortly after the bank holiday weekend, although it was possible that the Joule Thomson skid could be delayed to the following week as a result of a potential delay in the delivery of an accessory.

All earlier packages were now being tied in, the company said.

Looking at the schedule, Angus said the electrical room, separator vessel and passive dehydration were complete, while the first compression was targeted for delivery on 27 April.

The gas engine generator was set to be delivered on 29 April, with the export folders and diverters due on 3 May and the condensate stabilisation skid on 3 May.

It said the Joule Thomson skid would be delivered between 5 May and 10 May.

"The work of dry commissioning has begun with the identification of key lines for initial hydrotesting and the development of a programme for some 40 tests," the Angus board said in its statement.

"All welds are visible, so testing is of a relatively short duration.

"Welding and electrical tie-in of these skids to the ring main of pipework and cabling around the site are the immediate objectives."

Cable pull was expected over the next five working days, and the ring main of pipework was 80% complete, the board confirmed.

"We have some nine squads of welders, riggers and fitters supported by platers and a number of electrical specialists supporting tie-in.

"The first stages of dry commissioning are in progress with determination of the selection of hydrotesting of key site pipework.

"This will be augmented with electrical and control tests throughout the first two weeks of May."

Wet commissioning was expected to begin on or around 18 May, with the company being assisted by an "experienced team" led by OSL and Inspec.

"We continue to aim for a short wet commissioning programme and a target date of first gas of 1 June.

"This would allow for one full month of production at current high spot prices before the company's obligations to deliver volumes at the hedge price commence at the end of June."

At 1223 BST, shares in Angus Energy were up 5.77% at 1.38p.