Equinor Pushes Forward with Offshore Oil and Gas Electrification Plans on Norwegian Continental Shelf

Norway’s state-owned energy giant, Equinor, is placing a firm emphasis on electrification as the key to the energy transition. In line with this commitment, the company has awarded a contract for early stage engineering services to Multiconsult Norge, in partnership with subcontractors Aker Solutions and LINK Arkitektur, to advance its offshore oil and gas electrification plans on the Norwegian Continental Shelf (NCS).

According to Multiconsult, the “significant electrification contract” encompasses engineering services for the electrification of oil and gas installations in the Halten, Tampen, and Grane/Balder areas off the coast of Norway. The contract includes pre-front-end engineering design (pre-FEED) and FEED work, with options for detailed engineering, procurement assistance, and construction supervision, with an estimated total value of approximately NOK 600 million ($52.56 million).

The scope of the project involves the engineering of onshore facilities, including grid connection, transmission lines, substations, and landfalls. The initial contract covers the pre-FEED/FEED phase, scheduled for completion in 2025, with Multiconsult’s share amounting to NOK 66 million. The overall contract, including implementation phase options, is targeted for completion by 2030, pending approval from the authorities.

Last year, Multiconsult also secured a similar assignment from Equinor for the engineering of the grid connection to Hammerfest LNG (HLNG) as part of the Snøhvit Future project, aimed at enhancing Norway’s position as a low greenhouse gas emissions gas supplier.

Driving Decarbonization Through Electrification

Equinor highlighted the environmental benefits of electrification, stating that it significantly reduces emissions and enhances competitiveness by lowering CO2 costs and extending the lifespan of producing fields. The company’s focus on electrification aligns with efforts to reduce the carbon footprint of oil and gas installations.

Recent research by Rystad Energy indicates that applying electrification to upstream operations could reduce over 80% of oil and gas production emissions. Equinor has already implemented partial electrification at two platforms in a North Sea field, resulting in a reduction of 160,000 tons of CO2 emissions annually from the NCS.

Equinor plans to further replace gas turbines with power from shore for select fields and installations with longer operational lifespans. While partial electrification is deemed suitable for certain assets, the company acknowledges that some power needs will continue to be met by gas turbines.