Snøhvit partners will invest NOK 13.2 billion to upgrade the Hammerfest LNG (HLNG) plant at Melkøya.
On Dec. 20, Equinor and its Snøhvit partners submitted to Norway’s Minister of Petroleum and Energy the Snøhvit Future plan for development and operation (PDO), which involves gas onshore compression and electrification at the LNG plant.
The Snøhvit Future project consists of: the onshore compressor, transformer station and electric steam boilers on Melkøya; the grid connection, including a transforming station at Hyggevatn; and the development of new power capacity from Skaidi to Hammerfest.
Onshore compression will help maintain sufficient inlet pressure for the LNG plant as the reservoir pressure drops. It will also reduce the risk of accumulation of fluid liquids in the long multiphase pipeline from field to shore. This will give a longer operational window and extend plateau production.
Electrification of Melkøya will minimize emissions from LNG production.
Odin Estensen, managing director for Norway and the U.K. at Neptune Energy, which is a partner in the Snøhvit license, said, “The electrification of Snøhvit will reduce the CO2 emissions from Hammerfest LNG plant by around 850,000 tonnes per year and is a major step towards the decarbonization of our production.”
Onshore compression and conversion to electrical operation of HLNG are scheduled to start in 2028. Onshore gas compression will provide enough flow from the reservoir to extend plateau production and maintain high gas exports from the Hammerfest plant beyond 2030. Electrification will reduce CO2 emissions from HLNG by an estimated 850,000 tonnes per year.
“Snøhvit Future will strengthen Norway’s position as a reliable and long-term supplier of LNG to Europe. 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 Melkøya towards 2050,” Geir Tungesvik, Equinor’s executive vice president for projects, drilling and procurement, said.
The Hammerfest LNG plant, online since 2007, produces around 6.5 Bcm per year at normal production. Recovery and transport to shore are carried out from the Snøhvit, Albatross and Askeladd fields. The gas arrives at the plant via a 143 km pipeline. At the plant, the natural gas is processed and cooled to -163 degrees, after which it is stored in dedicated tanks before shipment. LNG, LPG and condensate products are exported by vessels or vehicles.
Three large modules will be installed at the plant, which will also be subject to extensive modifications. The Hammerfest region will also see the construction of a tunnel and a transformer station to bring electric power to Melkøya. Higher demand for power to the Hammerfest plant 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, according to Equinor.
“We are converting to electric operation at Melkøya, thereby reducing annual emissions of CO2 by around 850,000 tonnes,” Grete B. Haaland, senior vice president for Exploration and production north, said.
Electrification entails replacing the current gas turbine generators with power from shore.
As a result of the upgrades, Equinor expects to extend the operations phase by 10 years.
The Snøhvit field lies in water depths of 310 m to 340 m in the central part of the Hammerfest Basin in the southern part of the Barents Sea. Snøhvit was proven in 1984, and the original PDO was approved in 2002. Snøhvit, which was the first field to be developed in the Barents Sea, comprises the Snøhvit, Albatross and Askeladd structures.
Equinor Energy ASA operates the Snøhvit license with 36.79% interest on behalf of Petoro AS with 30%, TotalEnergies EP Norge AS with 18.4%, Neptune Energy Norge AS with 12% and Wintershall Dea Norge AS with 2.81%.