Statoil-led venture studies LNG expansion plans in Norway

12 January 2011 12:40  [Source: ICIS news]

STOCKHOLM (ICIS)--The Statoil-led Snohvit venture is studying technical concepts for building a second liquefied natural gas (LNG) plant at Hammerfest, Norway, Statoil said on Wednesday.

A formal decision on the investment is not expected until the end of 2013, Statoil said, adding that production could commence in 2018.

The capital expenditure for the proposed LNG plant would be about Norwegian kroner (NKr) 30bn (€3.9bn, $5bn), Statoil said.

A feasibility study on the new plant has already been completed and land has been cleared on Melkoya, which will be fed by natural gas from the huge resources under the Barents Sea.

“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,” said Geir Owren, a project manager with Statoil.

All offshore installations serving the present Train I LNG plant at Melkoya are 250-345 meters below the surface on the seabed. The gas is transported onshore through a 143km pipeline.

A second LNG plant, Train II, would be comprised of several sub-sea templates, production wells and a new pipeline.

Snohvit is owned by the Norwegian companies Statoil (33 %) and Petoro (30 %). The other investors are GDF Suez, Total, Hess and RWE Dea.

(€1 = NKr7.72, $1 = NKr5.95)

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By: Sverker Nyman
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