Statoil of Norway reportedly plans to invest NOK20 billion (about US$2.9 billion) to expand its Melkoya LNG export facility and to boost the plant’s operational life from 2035 to 2050.
Plant’s expansion would see an addition of a new pipeline and a compression facility, according to the Norwegian news service NRK.
The company plans to connect two additional wells, the Albatross and Askellaad, to expand its production sources as Statoil’s Production Manager Knut Gjertsen said. Hammerfest LNG currently sources and processes gas only from Snohvit.
The investment plans come after several PSA audits of the Hammerfest LNG facility. Norway’s Petroleum Safety Authority recently gave Statoil the consent to construct new logistics and maintenance building and carry out reconstruction of several existing facilities on Melkoya.
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LNG World News Staff; Image: Statoil