Aibel will be responsible for the EPCI of two new processing modules associated with the onshore compression and electrification of the LNG plant located at the Melkøya island in Norway, which is fed with gas produced from the Snøhvit field in the Barents Sea
The Hammerfest LNG plant at Melkøya (Credit: Aibel)
Equinor has awarded a contract worth NOK8bn ($785m) to Aibel to execute modifications of the Hammerfest LNG plant as part of the Snøhvit Future project in Norway.
In December 2022, Equinor and its partners in the Snøhvit licence agreed to upgrade the Hammerfest LNG plant at the Melkøya island in Norway with an investment of NOK13.2bn ($1.3bn).
Aibel will be responsible for the engineering, procurement, construction, and installation (EPCI) of two new processing modules associated with the onshore compression and electrification of the LNG plant.
The Norwegian firm will also construct a new receiving station for power from shore and undertake integration work at the plant under the same contract.
According to Equinor, the contract is an option in the front-end engineering and design (FEED) contract awarded to Aibel in 2020.
Equinor chief procurement officer Mette Ottøy said: “Aibel has been one of our main suppliers for Hammerfest LNG since the start-up in 2007. They know the plant well, have set up a local department in Hammerfest, and have solid experience from other major modification projects on plants while on stream.
“I therefore have high expectations of them doing a good job safely.”
Equinor stated that Aibel will also undertake additional upgrades of existing systems at the Hammerfest LNG plant to increase its resilience for extended life up to 2050.
The Snøhvit Future project involves online compression and electrification of the Hammerfest LNG facility. As the pressure drops in the reservoirs, compression is needed so that there is enough flow of the gas to the LNG plant, said Equinor.
The company expects the Snøhvit Future project to extend plateau production and drive high gas exports, jobs, and ripple effects as well after 2030. The project is also hoped to lower CO2 emissions from the LNG plant by 850,000 tonnes annually, which represents 2% of the total emissions of Norway.
Commissioned in 2007, the Hammerfest LNG plant is fed with gas sent through a 143km pipeline from the Snøhvit field in the Barents Sea.
The EPCI contract award to Aibel is conditional on regulatory approval of the Snøhvit Future project. Aibel said that its part of the Hammerfest LNG plant modification is slated to be completed in late 2027.
Aibel president and CEO Mads Andersen said: “We have been Equinor’s main supplier of maintenance and modification services at Hammerfest LNG since 2006, and our employees have gained good insight into the plant and developed great relationships with Equinor.
“We have also gained extensive experience from similar modifications and electrification assignments and are very grateful that Equinor selects us as the main contractor in the development of the future LNG facility at Melkøya.”