Norwegian oil & gas electrification story takes another step forward with multimillion-dollar deal

As Norway’s state-owned energy giant, Equinor, is convinced that electrification is the key to the energy transition, the firm has made a move to progress its offshore oil and gas electrification plans on the Norwegian Continental Shelf (NCS) by handing out a contract for early stage engineering services to Multiconsult Norge, in collaboration with subcontractors Aker Solutions and fully owned subsidiary LINK Arkitektur.

While disclosing its deal with Equinor, Multiconsult explained that the “significant electrification contract” would enable it to handle engineering services for the electrification of oil and gas installations in the Halten, Tampen, and Grane/Balder areas off the coast of Norway.

This assignment covers pre-front-end engineering design (pre-FEED) and FEED work with options for detailed engineering, follow-on work, procurement assistance, and construction supervision. The total estimated value of the contract, including all potential options, is approximately NOK 600 million ($52.56 million).

While the project entails the engineering of the entire onshore facility, which includes grid connection, transmission lines, onshore cabling, three substations, and landfalls, the initial contract covers the pre-FEED/FEED phase, which is scheduled to be completed in 2025. Multiconsult’s share is NOK 66 million.

The contract, including all potential options related to the implementation phase, aims for completion by 2030. These electrification projects are in an early phase. Therefore, the firm claims that much work remains before final investment decisions can potentially be made by the different partnerships; thus, the authorities need to approve the projects.

Multiconsult won a similar assignment last year with Equinor for the engineering of the grid connection to Hammerfest LNG (HLNG), part of the Snøhvit Future project, which aims to bolster Norway’s position as a reliable long-term supplier of gas with a low greenhouse gas (GHG) emissions footprint.

“Electrification significantly reduces emissions and also enhances our competitiveness by saving CO2 costs and extending the lifespan of producing fields. This enables us to sustain high energy deliveries with lower emissions from the Norwegian continental shelf (NCS), which is crucial for Europe’s energy security,” highlighted Equinor.

Three companies set a decarbonization quest in motion a few months ago to bring offshore electrification operations to new heights in the UK and Norway by throwing carbon capture solutions into the mix to curb oil and gas installations’ carbon footprint.

Rystad Energy’s research shows that applying electrification to upstream operations could curb over 80% of oil and gas production emissions. Recently, Equinor confirmed the partial electrification of two platforms at a giant North Sea field off the coast of Norway.

This came after the firm’s Sleipner field center, alongside the Gudrun platform and other associated fields, started partly operating on power from shore, downsizing carbon emissions from the NCS by 160,000 tons of CO2 per year.

Equinor plans to replace gas turbines with power from shore for some fields and installations with longer operational life spans. The company claims that partial electrification will be more suitable for some of its assets; thus, certain power needs will continue to be met by gas turbines.