Offshore staff
STAVANGER, Norway — Norway’s government has approved the Equinor-led Snøhvit partnership’s plans for the future operation of the Snøhvit area gas-condensate fields in the Barents Sea and the Hammerfest LNG production complex on the island of Melkøya, subject to conditions.
The approval covers the addition of onshore compression from 2028 and electrification of the plant at Hammerfest from 2030, supplied via the Norwegian grid.
Geir Tungesvik, Equinor’s executive vice president for Projects, Drilling & Procurement, said, “The project ensures long-term operation and export from Melkøya toward 2050. We fully understand that there have been many factors to consider, and we will recommend the partnership to meet the conditions for the authorities' approval."
Startup of electrification at Hammerfest will be two years later than originally envisaged, with the facility continuing to run on gas turbines for the remainder of this decade. The approval also opens the prospect of maintaining the gas turbines for backup power from 2030-2033, with the feasibility to be assessed by 2028.
Electrification of Hammerfest LNG is intended to reduce CO2 emissions from the plant by about 850,000 metric ton/year. According to Equinor, it represents the biggest individual emission reduction decision ever taken concerning decarbonizing Norway’s oil and gas production in Norway.
Overall, the Snøhvit partners plan to invest NOK13.2 billion ($1.28 billion) in 2022 terms in the Snøhvit Future project.
The government also approved Statnett's license application to lay an onshore 420-kV power cable between Skaidi and Hyggevatn, and it also approved Equinor's license application for a power cable (132 kV) between Hyggevatn and Melkøya.
Adding onshore gas compression should ensure sufficient flow from the reservoir to maintain high gas exports at Hammerfest LNG beyond 2030.
Three large modules will be installed at the plant: a compressor, substation and electric steam boilers, with extensive associated modification works.
A tunnel will be constructed to accommodate new power cables from Hyggevatn to Meland. From Meland, cables will be placed and buried on the seabed for the crossing to Melkøya.
In normal operation, Hammerfest LNG accounts for 5% of all Norwegian gas export.
Snøhvit licensees include Equinor Energy (36.79%), Petoro (30.00%), TotalEnergies EP Norge (18.40%), Neptune Energy Norge (12.00%) and Wintershall Dea Norge (2.81%).
08.08.2023
