Norway’s Equinor and partners to splash about $1.3 billion on Hammerfest LNG upgrade

Norway’s Equinor and its partners in the 4.3 mtpa Hammerfest LNG export plant will invest 13.2 billion Norwegian krone ($1.33 billion) to upgrade the facility located on Melkoya island.

Equinor started again shipping LNG from the Hammerfest terminal in June this year since a fire that broke out at the facility in September 2020.

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).

Norway's Equinor and partners to splash about $1.3 billion on Hammerfest LNG upgrade
Snohvit Future (Image: Equinor)

Gas compression and electrification

Equinor said in a statement on Tuesday the upgrade project named Snohvit Future involves gas onshore compression and electrification and would secure the future of Hammerfest LNG.

During a ceremony held on Tuesday in Hammerfest, Equinor submitted a plan for development and operation (PDO) of Snohvit Future to the petroleum and energy minister on behalf of the Snohvit partnership.

According to Equinor, onshore gas compression would provide enough flow from the reservoir to extend plateau production and maintain high gas exports from Hammerfest LNG beyond 2030.

In addition, electrification would reduce CO2 emissions from the LNG plant by around 850,000 tonnes per year, the company claims.

The project includes the construction of three modules, one for a feed gas compressor, a module for electrical steam boilers, and a transformer station.

High voltage cables would connect Melkoya to Hyggevatn substation while the partners would build a tunnel beneath the seabed to lead a power cable from Melkoya to Meland.

Onshore compression and conversion to electrical operation of Hammerfest LNG are scheduled to start in 2028, Equinor said.

“Snøhvit Future will strengthen Norway’s position as a reliable and long-term supplier of LNG to Europe,” Geir Tungesvik, Equinor’s executive vice president for projects, drilling and procurement, said in the statement.

“Electrification will allow us to deliver this gas with close to zero greenhouse gas emissions from production. The project will secure long-term operations and gas exports from Melkoya towards 2050,” he said.

Most Popular

Cheniere produces first LNG cargo at Corpus Christi expansion project

US LNG exporting giant Cheniere has produced the first cargo at the Corpus Christi Stage 3 expansion project in Texas.

Centrica seals LNG supply deal with Petrobras

UK-based energy firm Centrica has signed a 15-year LNG supply deal with Brazil’s state-owned energy firm Petrobras.

Japan’s Japex boosts LNG sales

Japan Petroleum Exploration (Japex) boosted its sales of liquefied natural gas (LNG) in the April-December period last year.

More News Like This

Norway’s Equinor restarts Hammerfest LNG export plant

Gassco data showed on Monday that the unplanned shutdown event ended on Sunday. A spokeswoman for Equinor also confirmed the...

Equinor extends shutdown of Hammerfest LNG export plant

Equinor decided to stop production on January 2 due to an issue on a compressor which reinjects CO2 to...

Norway’s Equinor shuts Hammerfest LNG terminal

Gassco data showed on Thursday that Hammerfest LNG will be offline until January 9, 2025. LNG Prime invited Equinor to...

Northern Lights welcomes second LNG-powered LCO2 carrier in its fleet

The second Northern Lights JV’s LNG-powered liquefied CO2 carrier has been delivered in China. Northern Lights, the JV consisting of...