High gas exports and emissions cuts from Hammerfest LNG

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 approximately 850 000 tpy.

“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,” said Geir Tungesvik, Equinor’s Executive Vice President for Projects, Drilling, and Procurement.

During normal production conditions, HLNG delivers 18.4 million m³/d of gas, or 6.5 billion m³/y. This is equivalent to the energy demand of approximately 6.5 million European homes, or 5% of all Norwegian gas export.

“Snøhvit Future is a comprehensive and complex project in which expertise, collaboration, and experience in the Norwegian petroleum cluster and within the partnership have brought us to an important final investment decision. The project has good socioeconomic benefits and will create strong ripple effects in the north,” continued Tungesvik.

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 – an important contribution to reaching Norway’s climate goal

“We are converting to electric operation at Melkøya, thereby reducing annual emissions of CO₂ by approximately 850 000 t. This is one of the largest individual emission reduction measures for decarbonisation of oil and gas production in Norway. The project is a key contributor to the energy transition,” said Grete B. Haaland, Senior Vice President for Exploration and Production North.

Electrification entails replacing the current gas turbine generators with power from shore. This will cut emissions equivalent to 13% of the oil and gas industry’s overall 55% emissions reduction by 2030. The project’s emissions reductions correspond to 2% of Norway’s annual emissions.

Major local and regional ripple effects

The development will generate considerable ripple effects in terms of employment as well as local and regional service deliveries. Approximately 70% of the value creation in the development phase is expected to come from Norwegian companies. More than a third of this will go to Northern Norway.

“The Snøhvit Future project underlines our commitment to the North. It is crucial to secure operation and maintain existing jobs on Melkøya. In the development phase, we estimate additional regional employment of around 1680 full-time equivalents. We are focusing on meeting the ambitions of North Norwegian content in the contracts to be awarded in the project phase towards operation start in 2028,” continued Haaland.

HLNG has generated significant socioeconomic benefits in the city of Hammerfest, the county of Finnmark, and the trade and industry in North Norway since its initial development in the 2000s. The plant is a cornerstone in the region, with around 350 employees as well as approximately 150 contractors and apprentices. There are indirect socioeconomic benefits in addition to this.

As a result of the development, the operations phase is expected to be extended by 10 years while maintaining current levels of employment.

Read the article online at: https://www.lngindustry.com/liquid-natural-gas/02012023/high-gas-exports-and-emissions-cuts-from-hammerfest-lng/