Latest Equinor Estimates Add $1Bn to Snøhvit Future LNG Project Cost

Equinor has raised the cost estimate for Hammerfest LNG's Snøhvit Future project to NOK 26.5 billion in 2026 value, adding around 1 billion dollars to the proposed cost. The increase is the second since the project was proposed in 2022 and represents an additional 1.1 billion dollars from the project's initial estimate. The project plans to install onshore gas compression to maintain production as reservoir pressure declines, and to electrify the facility to reduce emissions.

 

Details of the Cost Increase

 

Equinor has raised its cost estimate. It concerns the Snøhvit Future project. The estimate rose to NOK 26.5 billion. This is in 2026 value. It adds significantly to the cost.

The increase is the second to date. The project was proposed in 2022. An earlier revision came in December 2025. This latest adds around 1.1 billion dollars. This is from the initial estimate.

 

The Project Purpose

 

The project serves two main goals. It will install onshore compression. This maintains production at the facility. Reservoir pressure is declining. The compression addresses this.

The project also electrifies the facility. This reduces emissions. It will cut annual CO2 significantly. This equals about 2 percent of Norway's emissions. This supports environmental goals.

 

The Timeline

 

The project follows a defined timeline. This remains unchanged. Compression is due to start in 2029. Electrification follows in 2030. These occur at the facility's location.

The project is progressing. Equinor reported it about 60 percent complete. A compressor module was installed in August. Activity is high at the site. This includes a tunnel project.

 

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The Reasons for the Increase

 

Several factors drove the increase. The project is complex. It is at an operating facility. This is more complex than anticipated. Unforeseen issues also arose.

Specific challenges affected progress. These included operational difficulties. Adverse weather also featured. Difficult rock conditions arose. These occurred in the power cable tunnel.

 

The Company Response

 

Equinor acknowledged the cost development. Its leadership took it seriously. It cited the project's complexity. It noted the unforeseen challenges. This explained the increase.

Despite this, the project remains viable. Equinor said it remains profitable. It is expected to support jobs. It supports Norwegian value creation. It also supports European energy supplies.

 

The Partnership and Context

 

The project involves several partners. Equinor is the operator. Other companies hold stakes. These include state and energy companies. Together they back the project.

The project has a notable history. The government approved plans in 2023. The plant processes Barents Sea gas. It resumed production in 2022. This followed a fire and repairs.