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Costs and problems at Breagh increase
Posted 13.07.2012 08:36:20 av John Bradbury
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Sterling Resources has signalled a further rise in the cost of the UK Breagh gas development.   Today Sterling said the mechanical completion date for works at the Teesside Gas Processing Plant where Breagh gas is to be delivered, has not been achieved, due to “…problems with repair of equipment damaged during shipment and the management of design of the works.”   Project costs are certain to rise, the project partner says: “Preliminary estimates of costs and schedule to production start-up show a slight further increase in costs above the range indicated.”   Start-up at Breagh is now expected “towards the end of the fourth quarter of 2012,”Sterling says, while the cost of the phase 1development costs has now risen to between £600 and £610 million - an increase of 6 to 8 percent over the cost estimate of £566 million provided in the company’s 2011 annual report.
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