The Norwegian Government has approved Snøhvit partners' plans for the Equinor operated Snøhvit and Hammerfest LNG plant’s futures, subject to certain conditions.
The plans call for onshore compression to be activated from 2028, and electrification of the plant from 2030.
"The Snøhvit owners are pleased that the Government has now approved Snøhvit Future, a project that will strengthen Norway's position as a reliable, long-term supplier of gas produced with very low greenhouse gas emissions.
“The project ensures long-term operation and export from Melkøya towards 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," said Geir Tungesvik, Norwegian energy major Equinor’s Executive Vice President for Projects, Drilling & Procurement.
The authorities postponed the start of electrification by two years, to 2030, compared with the original schedule. In the interim, the plant will continue to run on gas turbines. The gas turbines are set to be maintained for back-up power from 2030 to 2033, which will be assessed by 2028 at the latest.
Hammerfest LNG’s electrification plan will see the replacement of the gas turbines with electricity from the grid. This will reduce CO2 emissions from the plant by around 850,000 tonnes annually.
"The project generates substantial spin-offs and jobs both in Finnmark, Northern Norway and nationally. Around 70% of value creation in the development phase is expected to go to Norwegian companies. Regional employment is estimated at almost 1,700 person-years of employment, mainly in Finnmark," Tungesvik added.
The government has also approved Statnett's licence application for a power cable (420 kV) between Skaidi and Hyggevatn, and Equinor's licence application for a power cable (132 kV) between Hyggevatn and Melkøya.
Snøhvit licensees are Equinor Energy (36.79%), Petoro (30%), TotalEnergies EP Norge (18.40%), Neptune Energy Norge (12%) and Wintershall Dea Norge (2.81%).
