Equinor's LNG plant upgrade cost soars

Equinor ASA

07/10/2026 11:56

OSLO, Oct 7 (Reuters) - The cost of Equinor's EQNR.OL project to cut the carbon dioxide emissions from Norway's Hammerfest LNG plant and extend the facility's lifetime has risen by more than 30% since last December, the company said on Wednesday.
The cost estimate rose to 26.5 billion Norwegian crowns ($2.77 billion) from 20 billion crowns seen in December, and compared to an original estimate of 13.2 billion crowns in 2022
"The project is being carried out at an operating facility and is more complex than anticipated. It has also been affected by unforeseen issues and challenges," Equinor's Senior Vice President Trond Bokn said in a statement
The project replaces the plant's gas-fired power supply with electricity from the mainland grid and adds onshore compression capacity to produce gas from an offshore field for longer
The measures are expected to cut CO2 emissions by 850,000 tonnes a year, or 2% of Norway's total
The project is 60% complete, with a new compressor due in 2029, and full electrification in 2030
Equinor operates the plant and has a 36.8% stake, while its partner Petoro has 30%, TotalEnergies TTEF.PA 18.4%, Vaar Energi VAR.OL 12%, Harbour Energy HBR.L 2.8%
($1 = 9.5596 Norwegian crowns)

 (Reporting by Nerijus Adomaitis, editing by Terje Solsvik)
 ((nerijus.adomaitis@thomsonreuters.com; +47 9027 6699; Reuters Messaging: nerijus.adomaitis.thomsonreuters@reuters.net))