Hammerfest LNG Snohvit Terminal

From Global Energy Monitor
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Hammerfest LNG Snohvit Terminal is an LNG export terminal in Norway. A fire at the terminal in September 2020 shut down production and the start-up target date following repairs is March 31, 2022.[1]

Location

The map below shows the location of the terminal, on Melkoa Island, in Hammerfest Municipality, Finnmark County.

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Project Details

  • Operator: Equinor[2][3][4]
  • Owner: Equinor (36.79%), Petoro (30%), TotalEnergies (18.40%), Neptune Energy (12%), Wintershall (2.81%)[5][4]
  • Parent company: Equinor (36.79%), Petoro (30%), TotalEnergies (18.40%), Eni and Vår Energi (12% combined), Wintershall (2.81%)[5][4][6]
  • Location: Melkoa Island, Hammerfest Municipality, Finnmark County, Norway
  • Coordinates: 70.6854, 23.59 (exact)
  • Type: Export
  • Trains: 1[7]
  • Capacity: 4.2 mtpa[4], 0.62 bcfd
  • Cost: 5.9 billion USD[8]
  • Status: Operating[9][5]
  • Start Year: 2007[4]

Note: mtpa = million tonnes per year; bcfd = billion cubic feet per day

Background

Hammerfest LNG Snohvit Terminal is a liquefied natural gas (LNG) liquefaction terminal in Norway.[10]

This facility is estimated to generate between 0.29 to 0.34 metric tons of carbon dioxide equivalent (CO2e) for every metric ton of LNG produced according to a 2013 report.[11]

In February 2020, Equinor announced that it was considering closing the terminal and replacing its capacity with a new pipeline from the Snohvit field.[12]

In September 2020, a fire broke out in an oil-driven turbine at the terminal, resulting in the evacuation of non-emergency staff and the closing down of operations.[13] Substantial fire damage to the terminal has meant that Equinor foresees extensive repair work lasting until March 2022 when it is targeting the restart of operations. Equinor has not disclosed the cost of the repairs, but the Norwegian state is expected to cover approximately 90% of the costs under the Norwegian Covid-19 petroleum tax relief package.[1]

In January 2022, an Equinor representative said that the company was still intending to bring the terminal back online by March 31, 2022.[14] Equinor subsequently informed that the production restart was being delayed by six weeks to May 17 due to COVID-19 restrictions affecting its workforce.[15] As of May 4, 2022, Equinor was on track "for a safe start-up on May 17"[2], however, on May 16, Equinor stated they were "taking the extra time necessary to safely resume operations." On May 22, it extended the outage till May 27.[16] On June 2, production resumed at Hammerfest LNG.[5]

In December 2022, Equinor and its partners announced that they would invest 13.2 billion Norwegian crowns (US$1.34 billion) to upgrade the facility. The new investments will support the long-term operation of the project and do not affect its total capacity.[17]

In June 2023, Eni acquired Nepture Energy, one of the project's owners.[18]

In August 2023, Norway's government approved a project to reduce the facility's emissions, including through onshore compression as of 2028 and electrification of the plant as of 2030.[19]

Articles and resources

References

  1. 1.0 1.1 Ole Ketil Helgesen, "New delay: Equinor pushes back re-start date at fire-hit Norway LNG plant", Upstream, Apr. 26, 2021
  2. 2.0 2.1 Staff, LNG Prime (2022-05-04). "Equinor's Hammerfest LNG plant on track to restart in May, CEO says". LNG Prime. Retrieved 2022-06-29.
  3. "Hammerfest LNG to resume operations in a week". www.equinor.com. 2022-05-16. Retrieved 2022-06-29.
  4. 4.0 4.1 4.2 4.3 4.4 International Group of Liquefied Natural Gas Importers (May 24, 2022). "Annual Report 2022 Edition" (PDF). GIIGNL. Retrieved July 5, 2022.{{cite web}}: CS1 maint: url-status (link)
  5. 5.0 5.1 5.2 5.3 "Production start-up at Hammerfest LNG". www.equinor.com. 2022-06-02. Retrieved 2022-06-29.
  6. "Eni and Vår Energi to acquire Neptune, a leading independent exploration and production company with low emission, gas-oriented operations in Western Europe, North Africa, Indonesia and Australia". www.eni.com. Retrieved 2023-09-11.
  7. Snohvit LNG Export Terminal, Melkoya Island, Hammerfest, Norway, Hydrocarbons, accessed July 2019
  8. "Snøhvit LNG Plant – Mechademy". www.mechademy.com. Retrieved 2022-07-25.
  9. Buli, Nora (June 2, 2022). "Norway LNG plant resumes output, boosting gas exports". Nasdaq. Retrieved June 29, 2022.{{cite web}}: CS1 maint: url-status (link)
  10. Hammerfest LNG Snohvit Terminal, GEO, accessed April 2017.
  11. Tarika Powell, "BC’S Carbon Pollution Could Double with LNG Plants", Sightline Institute, June 7, 2017
  12. Equinor eyes pipeline to replace LNG plant, Upstream Online, Feb. 27, 2020
  13. Nora Buli, Fire shuts Equinor's Melkoeya LNG plant, recovery time unknown, Reuters, Sep. 28, 2021
  14. Norway's Equinor still expects Hammerfest LNG restart in March, LNGPrime, Jan. 26, 2022
  15. Nora Buli, Norway LNG plant restart faces new delay in blow to Europe's gas supply, Reuters, Jan. 31, 2022
  16. "Norway's Hammerfest LNG plant extends outage until May 27". Reuters. 2022-05-22. Retrieved 2022-06-29.
  17. Equinor and partners to invest $1.3 bln in Norway LNG upgrade. Reuters. December 20, 2022.
  18. "Eni sees synergies of up to $1 billion from Neptune acquisition". Reuters. Retrieved 2023-09-11.
  19. "Governmental green light to the Snøhvit Future project". 2023-08-08. Retrieved 2023-09-11.

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External resources

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