StatoilHydro again halts production at “Snohvit”

Melkoya LNG (Allan Klo,

Norwegian energy major StatoilHydro this week stopped production at its Melkoya LNG plant on the Barents Sea coast. The production stop is the second over the last six months.


For three weeks, company experts will work intensively to sort out technical errors with the technology. StatoilHydro has experienced major technical problems with the LNG plant since production started in August last year. The plant located near the town of Hammerfest on the coast of the Barents Sea, has over the last months run with only 60 percent of capacity. The Norwegian energy company and its partners are now determined to sort out the technical problems with the plant. Several modifications in the technology will be made in order to help boost production. It might still take time before the Melkoya LNG plant runs will 100 percent capacity. Parts of the plant will have to be reconstructed and full production might be possible only in 18 months, NRK reports. Meanwhile, the project partners are losing big money on first hydrocarbon project in the Barents Sea. According to NRK, the reduced production capacity gives up to 500 million EUR losses per year.