Equinor's Snøhvit Future project, focused on the future operations of Snøhvit and Hammerfest LNG, has received approval from the Norwegian government. The approval encompasses an amended plan for the development and operation of Snøhvit and an amended plan for the installation and operation of Hammerfest LNG.

The core of the project involves onshore gas compression beginning in 2028, ensuring robust gas flow from the reservoir to sustain high gas exports and jobs at Hammerfest LNG beyond 2030. The development necessitates significant modifications on Melkøya and onshore. Notably, three large modules – a compressor, substation and electric steam boilers – will be integrated into the plant. An extensive modification process and the construction of a tunnel for power cables from Hyggevatn to Meland are also part of the project.

Although the authorities have delayed the start of electrification by two years, from 2028 to 2030, Equinor clarifies that the plant will continue to operate on gas turbines during this period. The approval introduces the possibility of maintaining gas turbines for backup power from 2030 to 2033, contingent upon a reassessment by 2028.

Moreover, the electrification of Hammerfest LNG will replace current gas turbines with grid-supplied electricity, resulting in a reduction of around 850,000 tonnes of CO2 emissions annually. Equinor emphasizes that this decision stands as the most significant emission reduction initiative in Norway's oil and gas production decarbonization efforts.

Geir Tungesvik, Equinor’s EVP for Projects, Drilling & Procurement, explains: “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."

The Snøhvit Future project involves a NOK 13.2 billion ($1.3 billion) investment from the Snøhvit partners. The approval secures continued operation at Melkøya, employing 350 permanent staff, along with 150 contractors and apprentices. This project leads to an increased demand for power and a reinforced grid.

Equinor had previously awarded Aibel an engineering, procurement, construction, and installation (EPCI) contract for Hammerfest LNG modifications related to the Snøhvit Future project. Additionally, the Norwegian company engaged Multiconsult for detailed engineering of the grid connection for Snøhvit Future.

Hammerfest LNG constitutes 5 percent of all Norwegian gas exports during regular production, equivalent to the energy needs of approximately 6.5 million European households. Equinor holds 36.79 percent of Snøhvit licenses, alongside Petoro (30 percent), TotalEnergies EP Norge (18.40 percent), Neptune Energy Norge (12 percent), and Wintershall Dea Norge (2.81 percent).

Geir Tungesvik concludes, "The project generates substantial spin-offs and jobs both in Finnmark, Northern Norway, and nationally. Around 70 percent 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."

Furthermore, the Norwegian government has approved Statnett's license application for a power cable (420 kV) between Skaidi and Hyggevatn, and Equinor's license application for a power cable (132 kV) between Hyggevatn and Melkøya.