Equinor (EQNR) Gets Approval to Upgrade Snohvit Future Project
Equinor ASA EQNR and partners received approval from the Norway Government to upgrade the NOK 13.2-billion Snohvit Future project.
The approval will ensure future activities of the Snohvit gas and condensate field in the Norwegian Sea. In addition, it will ensure the continued operations of the connected Hammerfest liquefied natural gas (“LNG”) plant.
Snohvit Future is Melkoya’s greatest project since the plant’s commissioning. The Snohvit Future project consists of online compression and electrification of Hammerfest LNG. The facility receives and processes up to 6.5 billion cubic meters of gas from the Snohvit field in the Barents Sea.
Equinor had planned for the facility’s electrification to commence in 2028. However, the Norway authorities granted the approval for Snohvit Future, given that the electrification begins two years later. The approval enables Equinor to perform onshore compression from 2028 and electrify the LNG plant from 2030.
Electrifying the Hammerfest LNG facility will replace the existing gas turbines with power extracted from the grid. Therefore, carbon dioxide emissions released from the LNG facility are expected to reduce nearly 850,000 tons per year.
Performing onshore gas compression will ensure sufficient flow from the reservoir to enable plateau gas production for export from the Hammerfest facility beyond 2030.
Snohvit Future will enhance Norway’s position as a reliable gas supplier. Snohvit has remaining reserves of 165.3 million standard cubic meters of oil equivalent. The attached Hammerfest LNG has a normal production capacity of 230 billion cubic feet per year.
Price Performance
Shares of Equinor have outperformed the industry in the past three months. The stock has gained 13.7% compared with the industry’s 3.7% growth.
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Zacks Rank & Stocks to Consider
Equinor currently carries a Zack Rank #3 (Hold).
Investors interested in the energy sector might look at the following companies that presently carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
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