- The Snøhvit Future project costs have risen to over NOK 20 billion.
- Onshore compression is delayed to 2029, a year later than planned.
- Electrification will reduce CO2 emissions by 850,000 tonnes annually.
- High inflation and complex integration have increased engineering costs.
Project Delays and Cost Increases
The Snøhvit Future project has experienced delays and cost overruns. Originally planned to start onshore compression in 2028, the timeline has now shifted to 2029. The project's cost has increased significantly, now exceeding NOK 20 billion, up from the original estimate of NOK 13.2 billion in 2022, adjusted to NOK 14.7 billion for inflation.
Environmental Impact
The project aims to enhance Norway's gas supply capabilities with minimal greenhouse gas emissions. Electrification of the Hammerfest LNG plant is expected to cut CO2 emissions by 850,000 tonnes annually, which is about two percent of Norway's total annual emissions.
Economic Contributions
During its development phase, the project is expected to contribute significantly to the Norwegian economy, with about 70% of value creation benefiting Norwegian companies. A substantial portion of this economic activity will occur in Northern Norway.
Challenges and Factors Affecting Progress
Several factors have contributed to the project's delays and increased costs. These include adverse weather conditions during the winter of 2024/2025, which limited work at the plant, and increased engineering costs due to complex integration with existing facilities. Additionally, a prolonged turnaround in the summer of 2025 delayed project work resumption, and high inflation has driven up equipment acquisition costs.
