Norwegian duo teams up on Equinor’s CO2-cutting LNG project

Norway-headquartered asset integrity management company Axess Group has won an enterprise of competence (EoC) contract with compatriot energy services company Aibel for work on a project operated by the state-owned energy giant Equinor.

As disclosed by Axess, its portion of work for the Equinor-operated Snøhvit Future project is set to be executed by its team in Singapore. The project aims to contribute to Norway halving CO2 emissions from oil and gas production on the Norwegian continental shelf by 2030 compared to 2005.

This is said to be essential for the country to meet its commitments under the Paris Agreement.

“We have been working on projects with Aibel since 2018 and are thrilled to continue our partnership on another project. We are proud to contribute to the Snøhvit Future project, as it aligns with our commitment to sustainability, including the reduction of environmental impact,” said Rajib Bhowmik, Regional Director – Asia at Axess Group.

Approved by the Norwegian government in August 2023, the Snøhvit Future project aims to secure energy supply to Europe towards 2050.

This is proposed to be done through onshore compression and electrification of the Hammerfest LNG facility, an onshore plant on the island of Melkøya that receives and processes the natural gas from the Snøhvit field through a 143-kilometer pipeline. 

Snøhvit is a gas and condensate field northwest of Hammerfest in Northern Norway. According to Equinor, it was the first field development in the Barents Sea. Following its discovery in 1984, production started in August 2007.

As explained by the energy major, the compression forming part of the Snøhvit Future project is meant to help maintain peak production when the pressure in the reservoirs is reduced. Additionally, electrification with power from the mainland is expected to remove “significant” greenhouse gas emissions from the gas turbines powering the plant.

In this context, the electrification of Hammerfest LNG is considered the largest single emission-reducing measure for Norway to achieve its climate goals. By replacing the power from the current gas turbines with power from the mainland, Equinor expects to slash the annual CO2 emissions by 850,000 tonnes, equivalent to 2% of Norway’s annual emissions.

Three large modules are set to be installed at the facility: a compressor, transformer station, and electrode steam boilers, accompanied by extensive modification work. The start-up of onshore compression is planned for 2028, and the transition to electric operation is scheduled for 2030.

While disclosing the EoC contract win, Axess stated that, following the completion of a comprehensive load test report and methodology development, on-site execution for inspection, testing, and certification of over 250 lifting equipment on the compressor module has started at Aibel’s Thailand yard.

As part of the Snøhvit Future project, a giant tunnel is under construction by Leonhard Nilsen & Sønner (LNS) under a deal won in January 2024 to carry power cables from Hyggevatn to Meland. From Meland, sea cables will be installed to Melkøya.

Since the electrification of Hammerfest LNG triggers the need for more power to the Melkøya facility, Statnett has started the construction of a new 420 kV power line from Skaidi to Hyggevatn.

Equinor handed out an engineering, procurement, construction, and installation (EPCI) contract to Aibel for Hammerfest LNG modifications in February 2023. That same month, Multiconsult was hired to deliver detailed engineering of the grid connection for the project.

In March 2024, Equinor signed a call-off option for the engineering of the grid connection to Hammerfest LNG. The call-off option, which was signed with Multiconsult’s subsidiary Multiconsult Norge, includes management assistance and follow-on engineering for the construction and commissioning phase of the project.