Snøhvit Future Project Delayed with Cost Increase to Over NOK 20 Billion
The Snøhvit Future project in Norway has been delayed, with costs rising by approximately NOK 4 billion to over NOK 20 billion. Aimed at enhancing Norway's role as a low-emission gas supplier and supporting energy supply to Europe by 2050, the project will now see onshore compression starting in 2029, a year later than planned, due to severe weather, increased engineering costs, and inflation. Despite the setbacks, 70% of the project's value creation is expected to benefit Norwegian companies, with significant investments directed towards Northern Norway.
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The Snøhvit Future project in Norway has been postponed with cost estimates rising by approximately NOK 4 billion since 2024, now exceeding NOK 20 billion. The project aims to enhance Norway's position as a low-emission gas supplier and secure jobs in Hammerfest while supporting energy supply to Europe by 2050.
Key aspects include onshore compression to maintain plateau production at Hammerfest LNG and electrification to reduce annual CO2 emissions by 850,000 tonnes, representing 2% of Norway's emissions. Currently, 70% of value creation is expected to benefit Norwegian companies, with over a third directed to Northern Norway.
Onshore compression is anticipated to commence in 2029, a year later than initially planned. Factors impacting progress include severe winter weather, increased engineering costs, an extended turnaround at Melkøya, and high inflation affecting equipment costs.
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