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Statoil expands Arctic gas plant

LNG-tanker outside Hammerfest in Finnmark.

Statoil plans to expand its Snøhvit gas plant outside Northern Norway for NOK 21 billion.

Location

Investments include connecting the gas field Askeladden to Snøhvit, and construction of a new pipeline.

Since the plant started production in 2007, the total value of gas sold from the Snøhvit field has reached NOK 82 billion (€9.75 billion). Statoil marked its 500th delivery of cargo from the LNG plant on Melkøya outside Hammerfest in October.

Production at the gas field is planned to continue at least until 2040, and Statoil plans to invest NOK 21 billion (€2.5 billion) in the coming ten years. In 2015-2016 a new injection well for CO2 will be drilled, followed by a new production well. The next year a smaller gas discovery, Snøhvit Nord, will be joined to the production facilities on Melkøya.

The largest project for the near future will be to add the third of the larger discoveries that make up the Snøhvit field – Askeladden, to the production facilities. Seven wells will be drilled at this field. The main development phase will be 2021-2016, Finnmarken writes.