Aibel awarded large Equinor contract for Snøhvit

On behalf of the Snøhvit Unit partners*, Equinor has awarded Aibel a front-end engineering and design contract (FEED) for modification of the Hammerfest LNG plant in connection with the Snøhvit Future project.

Snøhvit LNG copyright Aibel
Photo: Aibel

The FEED contract has an estimated value of NOK 140 million. In addition, the contract includes an option for each of the sub-projects for an execution phase including engineering, procurement, construction and installation (EPCI) for compression and electrification. The value of the options is of major size**.

Aibel’s task in the FEED phase consists of two parts: The first sub-project involves the construction of an onshore compression station at the Hammerfest LNG plant. The second sub-project is related to investigating electrification of the Hammerfest LNG plant to minimize the Snøhvit carbon footprint.

"We are excited to become part of further development of the future LNG plant at Melkøya, where we already have a long and good track record from our modification and maintenance contract," says Aibel President and CEO Mads Andersen.

"We also have strong expertise from several similar projects. At the same time, we are very pleased that Equinor has chosen us as a partner for important projects on the NCS for the third time in a short period of time," the CEO says, referring to this summer's award of the electrification of Gina Krog and Sleipner as well as the portfolio agreement for Oseberg.

“We are confident with the tasks that await us, and look forward to another exciting modification project," says Nils Arne Hatleskog, Executive Vice President for Field Development and Offshore Wind in Aibel.

"This contributes to strengthening our position in North Norway. In addition to securing own jobs for a long period ahead, a contract for the execution phase may create positive ripple effects for the local supplier market,” Hatleskog points out.

The project will be managed from Aibel's office in Asker, and around 80 employees will participate in the FEED phase. Start-up takes place immediately, with the scheduled delivery of the FEED in April 2021.

* The Snøhvit Unit partners are: Equinor Energy AS (operator), Petoro AS, Total E&P Norge AS, Neptune Energy Norge AS and Wintershall Dea Norge AS.

** Aibel uses the term "major size" on contracts where the value of Aibel’s scope is higher than NOK 2.5 billion.