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The Energy Republic June Edition 2022

In this edition, The Energy Republic provides a comparative analysis of the latest trends and challenges, including the outlook of the African Gas Market with expert commentaries and recommendations on possible ways Africa can develop and utilize its abundant natural gas resources for domestic use and export market earnings.

In this edition, The Energy Republic provides a comparative analysis of the latest trends and challenges, including the outlook of the African Gas Market with expert commentaries and recommendations on possible ways Africa can develop and utilize its abundant natural gas resources for domestic use and export market earnings.

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INDUSTRY NEWS

Equinor and Partners to Invest

NOK 9 billion for Gas Development

in the Norwegian Sea

Tom Elseth (left) (Equinor), Arild Stavnem (Petoro), Gunn Gadeholt (Spirit Energy), Geir Tungesvik

(Equinor), Terje Aasland (Minister of Petroleum and Energy) and Ørjan Jentoft (Vår Energi)

Equinor and Halten East partners

Vår Energi, Spirit Energy and

Petoro have decided to invest

about NOK 9 billion in the development

of the area neighbouring to the Åsgard

field in the Norwegian Sea.

The area consists of six gas and

condensate discoveries and option on

another three prospects. The

partnership today submits the plan for

development and operation to the

Ministry of Petroleum and Energy.

estimated at almost 16 million Sm3 of oil

equivalent, or around 100 million barrels of

oil equivalent, 60 percent of which is gas

piped via Kårstø to Europe.

“Halten East is a subsea development

consisting of five subsea templates that will

be tied back to the existing infrastructure on

the Åsgard field, ensuring good resource

exploitation and high value creation, low

development costs, and low CO2

emissions,” says Randi Elisabet Hugdahl,

vice president, Åsgard operations.

Production

start-up at

Hammerfest

LNG

A

fter extensive repairs and improvement

work, Hammerfest LNG is back in

production after the fire in September

2020. The first liquified natural gas (LNG) is now

on tank at Melkøya.

“With the start-up of Hammerfest LNG, we add

further volume to the already substantial gas

deliveries from Norway. This is of great

significance in a period when predictable and

reliable supplies are highly important to many

countries and customers,” says Irene

Rummelhoff, Equinor ’s executive vice

president, Marketing, Midstream and

Processing.

Norway is an important gas supplier to Europe,

and the volumes from Hammerfest LNG

account for more than 5% of Norwegian gas

ex p o r t s . D u r i n g n o r m a l p ro d u c t i o n

Hammerfest LNG delivers around 6.5 billion

cubic metres per year, equivalent to the annual

gas demand of 6.5 million European

households.

“I would like to thank all employees, suppliers

and partners that have done a great job getting

the plant ready for safe start-up. This is a huge

and complicated task, with much of the project

work during a challenging pandemic," says

Rummelhoff.

“Gas is an important energy carrier for

Europe. Halten East utilises the existing

gas infrastructure on the Norwegian

continental shelf (NCS) and will add

important volumes that will generate

substantial value. The project is a good

example of how Equinor works with

partners and government authorities

across production licences to find smart

solutions for optimal resource

exploitation from the NCS,” says Geir

Tungesvik, Equinor’s executive vice

president, Projects, Drilling &

Procurement.

Halten East is a collective name for

several small-size discoveries and

prospects. Finding economically viable

development alternatives for each

individual project was difficult. In 2020

the licensees in the four licences

therefore agreed to develop the area as

a unit.

Recoverable reserves in Halten East are

The project is planned to be executed in two

phases. In the first phase of the

development, six wells will be drilled in the

period 2024-2025, whereas phase two is

p l a n n e d t o b e d e v e l o p e d i n

2029.Production start from the two first

wells is scheduled for 2025. Subsequently,

the wells will be put on stream as they are

completed.

Social spin-off effects in Norway

According to a spin-off study by Bodø

Science Park the national employment

effects in the development phase of Halten

East are estimated at slightly more than

3000 person-years of employment per year

over five years in the period 2022-2029.

More than 90 percent of the Halten East

investments go to suppliers resident in

Norway.

Partners: Equinor Energy AS (57.70% -

operator), Petoro AS (5.90%), Vår Energi AS

(24.60%) and Spirit Energy AS (11,80 %).

Repairs of sophisticated equipment and

compressors have been performed, in addition

to a scheduled turnaround and ordinary

maintenance. More than 22 000 components

have been checked, and 180 kilometres of

electric cables have been replaced. To minimize

infection spreading extensive infection control

measures and strict distancing rules have been

implemented. The plant is built for operation at

minus 163 degrees Celsius, and a controlled and

stepwise procedure is followed towards full

production.

The LNG tankers Arctic Voyager, Arctic Lady and

Arctic Princess are anchored up outside

Melkøya, ready to receive new cargoes from

Hammerfest LNG. Normally, it takes 4-5 days to

fill the storage tanks at the plant, before the

ships are loaded with LNG for shipping to

receiving terminals in various markets. In full

production, a ship will leave Melkøya

approximately every five days. Each ship

contains about 1 TW of energy. The partnership

includes Equinor Energy AS, Petoro AS,

TotalEnergies EP Norge AS, Neptune Energy

Norge AS, and Wintershall Dea Norge AS.

Equinor is the operator of Hammerfest.

31

THE ENERGY REPUBLIC I SPECIAL EDITION

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