The Snohvit partners will invest NOK 13.2 billion in upgrading the Hammerfest LNG plant
The Snøhvit partners will invest NOK 13.2 billion (2022) in upgrading the Hammerfest LNG plant, HLNG, at Melkøya. The project involves gas onshore compression and electrification and will secure the future of HLNG, according to Equinor's release.
At a ceremony in Hammerfest, Equinor submitted a plan for development and operation (PDO) of Snøhvit Future to the Minister of Petroleum and Energy on behalf of the Snøhvit partnership.
Onshore gas compression will provide enough flow from the reservoir to extend plateau production and maintain high gas exports from HLNG beyond 2030. Electrification will reduce CO2 emissions from HLNG by around 850,000 tonnes per year.
During normal production conditions, HLNG delivers 18.4 million standard cubic metres of gas per day, or 6.5 billion cubic metres per year. This is equivalent to the energy demand of around 6.5 million European homes, or 5% of all Norwegian gas export.
Three large modules will be installed at the plant, which will also be subject to extensive modifications. In addition, there will be a high activity level in the Hammerfest region, such as the construction of a tunnel and a transformer station to bring electric power to Melkøya.
Higher demand for power to HLNG will trigger Statnett’s construction of a 420 kV power line from Skaidi to Hyggevatn and the Snøhvit partners will provide a considerable investment contribution. The new line will strengthen the power infrastructure by providing higher grid capacity to Hammerfest, paving the way for new industrial developments in the area.
Electrification entails replacing the current gas turbine generators with power from shore. This will cut emissions equivalent to 13 per cent of the oil and gas industry’s overall 55 per cent emissions reduction by 2030. The project’s emissions reductions correspond to two per cent of Norway’s annual emissions.
The licence owners of Snøhvit are: Equinor Energy ASA (36.79%), Petoro AS (30.00%), TotalEnergies EP Norge AS (18.40%), Neptune Energy Norge AS (12.00%) and Wintershall Dea Norge AS (2.81%).
The Snøhvit field lies in the central part of the Hammerfest basin in the southern part of the Barents Sea. The water depth is 310 – 340 metres. Snøhvit was proven in 1984, and the original plan for development and operation (PDO) was approved in 2002. Snøhvit was the first field to be developed in the Barents Sea. The field comprises the Snøhvit, Albatross and Askeladd structures.
