Norwegian energy giant Equinor has awarded compatriot Aibel a front-end engineering and design contract for modification of the Hammerfest LNG export plant.
The deal is a part of the Snohvit Future project that requires large modification work at the LNG plant.
Natural gas from the Snohvit (Snow White) field in the Barents Sea reaches the plant via a 160-kilometer gas pipeline.
Aibel knows the plant well, having provided maintenance and modification services there since the production start in 2007.
The new FEED contract has a price tag of about 140 million Norwegian crowns ($15.9 million).
In addition, the contract includes an option for two sub-projects including engineering, procurement, construction and installation for compression and electrification.
Aibel said the value of the options is of “major size” meaning higher than 2.5 billion Norwegian crowns ($284.5).
The firm’s scope in the FEED phase consists of two parts with the first sub-project involving the construction of an onshore compression station at Hammerfest LNG.
The second sub-project is related to investigating electrification of the plant to minimize the Snøhvit carbon footprint.
Aibel will manage the project from its office in Asker with around 80 employees participating in the FEED phase.
Works will start immediately, with the scheduled delivery of the FEED in April 2021, it said.
FID for sub-projects
Equinor and partners are working towards two final investment decisions for the sub-projects in the second half of 2021.
Following FIDs and regulatory approval, Equinor and partners have the possibility to exercise for each sub-project an option for EPCI, that is included in the FEED contract.
Besides Equinor as the operator, the Snohvit partners include Petoro and Norwegian units of Total, Neptune Energy, and Wintershall Dea.