Equinor Advances LNG Decarbonization With Axess-Aibel Deal
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Equinor EQNR, the Norwegian energy giant, is making a significant stride in its decarbonization journey through its flagship Snohvit Future project, which aims to reduce CO2 emissions from oil and gas production on the Norwegian continental shelf. In a fresh development, Axess Group has won an enterprise of competence (EoC) contract with fellow Norwegian firm Aibel, reinforcing their collaboration on Equinor’s carbon-reducing efforts at the Hammerfest LNG facility.
EQNR's Snohvit Future Project: A Key to Paris Agreement Targets
The Snohvit Future project, approved by Norway’s government in August 2023, is central to the country’s goal of halving oil and gas production emissions by 2030 compared to 2005. By electrifying Hammerfest LNG with power from the mainland and implementing onshore compression, Equinor expects to cut 850,000 tons of CO2 emissions annually — about 2% of Norway’s total yearly emissions. The transition is crucial for the nation to meet its obligations under the Paris Agreement.
EQNR Pushes Ahead With Construction Milestones
The electrification initiative involves installing three large modules at Hammerfest LNG: a compressor, a transformer station and electrode steam boilers. A major tunnel, being constructed by LNS, will carry power cables from Hyggevatn to Meland, followed by seabed cables to Melkoya. To meet the increased power demand, transmission system operator Statnett has already started building a new 420 kV line from Skaidi to Hyggevatn.
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Meanwhile, Aibel — awarded an EPCI contract in February 2023 — is leading modification work at the site. Its Thailand yard has commenced inspection, testing and certification of more than 250 pieces of lifting equipment on the compressor module, with Axess executing the scope out of its Singapore team.
EQNR Sets 2028-2030 Timeline for Full Implementation
Onshore compression is expected to begin by 2028, with full electrification and elimination of gas turbine-based power at Hammerfest LNG targeted for 2030. Equinor emphasizes that these upgrades will extend the life of the Snohvit field — Norway’s first Barents Sea development, operational since 2007 — and maintain energy supply to Europe through 2050.
As Equinor continues awarding contracts, including a March 2024 call-off option with Multiconsult Norge for engineering and management support, the Snohvit Future project is emerging as a cornerstone in the company’s and Norway’s broader climate roadmap.
EQNR’s Zacks Rank & Key Picks
EQNR currently carries a Zack Rank #3 (Hold).