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Snohvit project with big losses

Statoilhydro`s Melkшya plant

Since production at the Snohvit field started last August, only seven shipments of LNG have left the Melkoya plant on the Barents Sea coast. Technical problems with the plant have given project owners losses of about 5 billion NOK (630 million EUR).

Location

As reported by newspaper Dagens Næringsliv, the LNG plant has been out of order half of the time since it completed in August last year. The rest of the time, it has run with only half of its capacity. Only seven shipments with LNG have left the Melkøya plant. According to original plans, the LNG shipments were to leave the island every six day. The latest losses come after major budget overruns in the construction period and a more than one year project delay. The construction cost for the project have amounted to 39 billion NOK, which is 50 percent more than original budgets.