Norwegian energy company Equinor has awarded Aibel a front-end engineering and design (FEED) contract valued at Nkr140M (US$15.6M) to modify the Hammerfest LNG plant in connection with the Snøhvit Future project
The FEED work will cover two sub-projects under the Snøhvit Future development: onshore compression and Hammerfest LNG electrification.
“Snøhvit Future is a complex project that will require large modification work at the Hammerfest LNG plant,” said Equinor chief procurement officer Peggy Krantz-Underland. “By awarding the FEED contract to Aibel we enable continuity and experience transfer. Aibel knows the plant well, having provided maintenance and modification services there since the production start in 2007,” she said.
The first sub-project involves constructing an onshore compression station at the Hammerfest LNG plant. As the pressure in the wells on the Snøhvit field decreases, there will be a need for pressure support to maintain plateau production at the plant. The onshore compression station would be expected to contribute to an increase of the recovery factor from the Snøhvit field. Equinor and Snøhvit Unit partners plan a concept select decision for the compression scope during Q3 2020.
The second sub-project is related to investigating electrification of the Hammerfest LNG plant to minimise the Snøhvit carbon footprint. By replacing current gas turbines with power from shore, it may be possible to reduce CO2 emissions to near zero. Equinor and partners plan a concept select decision for the electrification scope at the end of 2020.
“With the Snøhvit Future project we aim to ensure further value creation from the Snøhvit field and to deliver on our ambitions for emissions reductions in Norway,” said Equinor acting senior vice president for project development Trond Bokn. “The Snøhvit field contains enough gas to maintain production beyond 2050, and Hammerfest LNG will secure jobs for many years to come,” he added.
Equinor and Snøhvit Unit partners Petoro, Total E&P Norge, Neptune Energy Norge and Wintershall Dea Norge are working towards two FIDs for the sub-projects in H2 2021.
Given FIDs and regulatory approval, Equinor and partners have the possibility to exercise for each sub-project an option for engineering, procurement, construction and installation that is included in the FEED contract.
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