Equinor says costs climb for Hammerfest LNG upgrade project

The project includes onshore compression and electrification of the Hammerfest LNG terminal.

“Since the PDO (plan for development and operation) the cost increase is 1.9 billion 2024-NOK,” Equinor said in a statement on Monday.

According to the firm, more than 500 million Norwegian krone of this relates to currency effects.

“One of the main reasons for the higher costs is the joint venture’s decision to change the design of an electric boiler as a result of safety considerations,” Equinor said.

The firm did not provide further information.

In August last year, Equinor and its partners Petoro, TotalEnergies, Neptune Energy, and Wintershall Dea received an approval for the Snohvit Future project to upgrade the LNG export facility.

The Norwegian firm and its partners said in December 2022 they would invest 13.2 billion Norwegian krone ($1.24 billion) to upgrade the facility.

Moreover, the project will extend the productive life of Hammerfest LNG past 2030.

Hammerfest LNG liquefies natural gas coming from the Snohvit field in the Barents Sea.

Gas reaches Hammerfest LNG via a 160-kilometer gas pipeline which became operational in the autumn of 2007.

Equinor is the operator of both the Snohvit field and Hammerfest LNG with a 36.8 percent stake.

Other license owners of Snohvit are Petoro (30 percent), TotalEnergies EP Norge (18.4 percent), Neptune Energy Norge (12 percent), and Wintershall Dea Norge (2.81 percent).