Norway is the world’s second largest natural gas exporter. However, the project has been repeatedly delayed due largely to the immense technical and cost challenges. Reportedly, under current consideration is a switch to all liquefied natural gas (LNG) production to improve its economic feasibility, as well as a change of partners. A new agreement is now expected in autumn 2012 following the expiration of the original partners’ agreement in June. Most of it was transported to Europe via its extensive export pipeline infrastructure and a smaller amount (4. 3 percent) via LNG tanker. Liquefied natural gas (LNG).
According to NPD estimates, 2011 shipments of Norwegian LNG totaled an estimated 150 Bcf, up from 138 Bcf in 2010. OECD European countries in 2010 received about 74 percent of the total, with Spain importing almost half of that. The United States imported about 5 percent or 26. 8 Bcf. Norway has long-term contracts with Spain’s Iberderola and the U. S. ‘s El Paso. Norway became an LNG exporter in 2007 with the beginning of commercial production from the Snohvit gas field, Norway’s first natural gas development in the Barents Sea. Statoil operates an LNG export terminal and liquefaction facility at Melkoya, near Hammerfest.
The Melkoya facility, the first large-scale LNG export terminal in Europe, has a capacity of about 200 Bcf/y and is connected by pipeline with the Snohvit gas field. The Snohvit field produced 0. 2 Tcf in 2010. The Melkoya facility is producing at full capacity and Statoil is currently studying the expansion possibilities of adding a second train. Field development plans may be decided by the end of 2013, and additional LNG production could begin in 2018. The project’s expansion would likely be fed by the nearby Askeladd field, which is due onstream in 2014 or 2015, and other new projects in the area.
Melkoya ,Statoil and the entire Snohvit consortium see huge growth potential for this market, making their initial EUR 7. 5bn outlay on the island of Melkoya a worthwhile investment. SNOHVIT PROJECT Recoverable reserves 193 billion cubic metres of natural gas 17. 9 million cubic metres of condensate (light oil) 5. 1 million tonnes of natural gas liquids (NGL) Water depth 250 to 345 metres Development solution Remotely operated subsea system Pipelines 143 kilometres for feeding gas to the coast 153 kilometres for reinjecting carbon dioxide below the seabed Land plant Melkoya, just outside the shipping channel to Hammerfest.
Annual export 5. 67 billion cubic metres of LNG 500,000 to 900,000 cubic metres of condensate 150,000 to 250,000 tonnes of liquid petroleum gas (LPG) Shipments Around 70 shipments a year On-stream period 2007 to 2035 Hammerfest LNG in numbers pr. 13. March 2012 • Totally 358 persons employed by Statoil • 302 living in Hammerfest • 12 living in the rest of Finnmark • 20 living in Troms • 3 living in Nordland • 21 living in the rest of Norway • 17 % women • Average age: 35,8 Partners in the development are Statoil (36. 79% and operator), Petoro (30%), Total E&P Norge (18.40%), GDF SUEZ E&P Norge (12%), and RWE Dea Norge (2. 81%).
The energy efficiency of the liquefaction facility is 70%, which is the best yet achieved in any plant of this kind across the world (the compressor operates with an efficiency of 230kWh per ton of LNG). Snohvit contractors and construction The management, engineering, procurement and construction contract (€380m) was awarded to Linde AG for the provision of key equipment for the LNG terminal. Linde uses MFC liquefaction technology developed jointly with Statoil (Air Products and Philips also contributed technology to the liquefaction train).
The instrumentation for the facility was supplied by Parker Instrumentation. Aker Kvaerner was awarded a contract in early 2005 (worth an estimated Nkr1bn) for important completion work at the LNG facility at Melkoya Island. This contract involved Aker Kvaerner Elektro (for electrical and instrumentation installation), Kaefer IKM for scaffolding, insulation and surface treatment and Aker Stord for management of this section of the project which involved installation and integration of the liquefaction / process equipment into the island infrastructure.
Aker Stord was awarded the main hook-up and installation contract on Melkoya Island in 2003 and was awarded the contract for preparing the infrastructure and equipment on the island. Aker Kvaerner employed over 800 personnel working on the island over the first half of 2006 so that the project could be completed on schedule. It is estimated that 70 cargoes of LNG per year will be shipped out from the Melkoya facility. The annual exports are estimated to be 5. 75 billion cubic metres of LNG, 747,000t of condensate and 247,000t of liquefied petroleum gases (LPG).
The total investment included Nkr34. 2bn for field development, pipeline and land plant and Nkr5. 4bn for ships. The project involved the delivery of LNG from the Snohvit LNG Plant to Norway’s coastal cities and its neighbour countries by small LNG vessels (this accounts for the remainder of the capacity of the LNG facility). The parties have worked with LNG Norge (a subsidiary of Statoil). The idea was then developed into a long-term charter for two 140,000 cbm (Moss-Rosenberg tank type) LNG carriers worth Nkr3bn ($337. 2m).
‘K’ Line and Statoil are the owner-operators of the vessels, which were delivered in April 2007. The vessels were initially engaged in domestic transportation, but their activity was later expanded to ports in neighbouring countries. In 2004 the Snohvit partners also signed a deal with Leif Hoegh and Co and Misui OSK lines for one vessel to serve the project during a 20-year charter. The ship was built at Mitsubishi Heavy Industries and was delivered in late 2006. In addition, TotalFinaElf and Gaz de France have commissioned their own vessels to transport their share of the gas.
The construction of an LNG plant takes three to six years. At the peak, more than one thousand workers may be needed, but many for less than a year. The Snohvit LNG project in Norway, constructed between 2002 and 2007, employed around 1,800 during the peak period of construction. Many of these are high-skilled jobs that require extensive training, and the short period of construction does not allow time to learn high-skilled jobs. This includes not only engineering and management positions, but also skill-intensive manual work like specialized welding.
The estimated number of workers at the construction site month-by-month during the construction of the Snohvit LNG plant at Melkoya in Norway. The lower-skill jobs are denoted by pink (concrete wall construction) and grey (painting) bars. The graph shows the number of people estimated to be working at any one time, so that when we count workers from all shifts, the number of jobs could reach 1,800 in the peak months. Gasnor distributes natural gas in pipelines, as well as LNG and CNG. The company owns and operates production facilities for LNG (Karmoy and Bergen). LNG is distributed by two small tankers (1000m3 / 7500m3) and 13 CNG trailers