Languages

Snøhvit repairs at half price

The Melkoya LNG plant (StatoilHydro.com)

StatoilHydro thought the repairs of the Snøhvit LNG plant in Arctic Norway would cost around 500 million EUR. New estimates now show that the repairs will only cost 225 million EUR.

Location

Since StatoilHydro’s LNG-plant at Melkøya was opened in 2007, the company has struggled with major problems in production. In 2008 the plant produced only 44 percent of the volume its orginal capacity. In autumn 2008 the costs of repairs were estimated up to 700 million EUR. However, the recently decided reconstruction plan for the plant has a cost frame of only 225 million EUR.

According to Norwegian newspaper Dagens Næringsliv an important reason to why the reconstruction is cheaper than estimated is the fact that several of the problems have already been solved, and that the plant is now running at a much better production rate than earlier. Therefore there will not be the need for full reconstruction of any parts of the plant, and most of the improvements can be done through adjustments of the existing machinery.