Equinor Awards $143M Contract for Snøhvit Future Project
On behalf of the Snøhvit partners, Equinor has awarded a construction and installation contract to Leonhard Nilsen & Sønner (LNS) to build a tunnel and landfall for the project expected to strengthen Norway’s position as a long-term supplier of gas produced with very low greenhouse gas emissions.
The scope of the contract, worth $142.7 million (NOK 1.5 billion), includes the construction tunnel and landfall for the power cable that will run from Hyggevatn to Melkøya.
In other words, the company will build an infrastructure allowing power from Statnett’s transformer substation at Hyggevatn to be transmitted to Hammerfest LNG on Melkøya.
Multiconsult has already been awarded the engineering contract for the work to be performed by LNS., and will also assist in the implementation of this work.
Nexans will supply the power cable from Rognan and Halden, while Aibel secured the biggest contract covering all modification work on Melkøya. They have chosen the company Consto in Northern Norway as their supplier for construction and installation work for the project.
“This is LNS’s first assignment for Equinor. They submitted the best bid overall, and we look forward to working with a new supplier in the region. LNS also has a number of sub-suppliers, including Viggo Eriksen in Hammerfest, Alta Anlegg and Hörmann Norway in Tromsø,” said Mette Ottøy, Equinor’s chief procurement officer.
“LNS estimates that around 70% of the generated value will end up in Northern Norway, creating about 200 person-years (FTEs) of employment. For Equinor, it has been important that the Snøhvit Future project should create ripple effects throughout the region,” added Trond Bokn, Equinor’s senior vice president for project development.
The Snøhvit Future project includes onshore compression and electrification of Hammerfest LNG on Melkøya. With compression, high gas exports, jobs and ripple effects can be maintained also after 2030.
The electrification of the plant will enable the reduction of emissions from the plant by 850,000 tons of CO2 annually.
Hammerfest LNG is a key company in the region with approximately 350 permanent employees, plus about 150 contractors and apprentices.
Snøhvit Future project partners are Petoro, TotalEnergies, Neptune Energy and Wintershall Dea.
