Norway: Snohvit Licence Partners Considering a New LNG Plant

The partners in the Snøhvit licence have decided to perform studies of possible concepts for building a new LNG plant at Melkøya in Hammerfest (Train II).

The licence has conducted a feasibility study of processing capacity expansion of Hammerfest LNG plant, Melkøya called Snøhvit Train II, and have now decided to study technical concepts that may make further expansion economically feasible.

The next investment decision is still some years away. A possible investment decision may be made towards the end of 2013 at the earliest, and the plant can be expected to be online in 2018, at the earliest. .

”We are considering expanding the LNG capacity at Melkøya by building a new LNG plant.

Capacity expansion will accelerate the production of gas that has already been found and open for earlier production of new gas that extensive exploration activities in the Barents Sea can hope to discover,” says Statoil’s project manager, Geir A. Owren.

In addition to the Melkøya expansions, a possible extension of capacity will entail a substantial development offshore involving several subsea templates, production wells and a new pipeline to land.

Archaeologists from Tromsø Museum have over the past two years conducted archaeological excavations in the Melkøya area so the construction site has been cleared for possible expansion.

Facts about Snøhvit and Melkøya

* Snøhvit is the first petroleum development in the Barents Sea. Huge quantities of natural gas are transported to land through a 143 kilometre long pipeline for liquefaction at Europe’s first production facility for Liquefied Natural Gas, Hammerfest LNG.

• Snøhvit is the first major development on the Norwegian continental shelf for which the entire production facilities have been placed on the seabed, between 250 and 345 metres below the surface.
• The well stream is separated at the Melkøya LNG plant and the natural gas is chilled to minus 163 degrees before being shipped to markets.
• Hammerfest LNG (Train I) currently produces 13,000 tons LNG, 2,000 tons condensate and 900 tons LPG each day.
• According to the current plan for Train I, the facility will over a 30-year period produce 190 GSm3 gas from the Snøhvit, Askeladd and Albatross fields.
• Owners: Statoil Petroleum AS (33.53%), Petoro AS (30%), GDF SUEZ E&P Norge AS (12%), Total E&P Norge AS (18.4%), Hess Norge AS (3.26%) and RWE Dea Norge AS (2.81%)

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Source:Statoil, January  12, 2011;