Equinor ASA is phasing out gas-fired generation in one of its most prolific natural gas production hubs in favor of electricity as it looks to increase both the sustainability and the lifespan of its North Sea operations.
Norway’s Equinor disclosed that its offshore facilities at the Sleipner field and the adjacent Gudrun platform had been connected to onshore power at the end of March, completing the electrification of platforms and processing facilities across the Utsira High geological formation.
In the coming days, Equinor plans to idle one of its operative gas turbines at the Sleipner A platform, leaving a second one active for backup power. The company, currently the largest pipeline gas exporter to the European Union (EU), said the project falls in line with its plans to lower emissions while developing new resources.
“With power from shore, we can develop new discoveries and resources from low-emission production, and gas export from the area can be maintained for a long time to come," said Kjetil Hove, executive vice president for Norwegian exploration and production (E&P).
Equinor noted that the additional gas saved from generating electricity for its offshore operations in the North Sea would be added to its exports to Europe.
To date, Equinor and its partners have invested more than $94 million connecting its offshore operations to onshore power through a connection at its Johan Sverdrup facilities. The Utsira High power grid includes the Johan Sverdrup, Gina Krog, Sleipner, Gudrun installations operated by Equinor, as well as Edvard Grieg and Ivar Aasen operated by a unit of BP plc.
The company estimated that electrification could eliminate 1.2 million tons/year of carbon dioxide previously released during E&P activities in the Utsira High.
The final step of adding the Sleipner fields also means that some of the North Sea’s most prolific active wells and an essential hub for gas transport to Europe would have reduced associated emissions.
Equinor has also included plans to phase out gas-fired generation at its Hammerfest LNG facility on the Arctic island of Melkøya as a part of a $1.3 billion investment to keep the terminal operational for the next several decades. Hammerfest is the only liquefied natural gas export facility in Europe. It supplied 3.55 million metric tons to EU countries last year.
Norway has also replaced Russia as Europe’s largest gas supplier since war broke out in Ukraine and the Kremlin cut off pipeline exports to Europe in 2022. Norway supplies about 20-25% of gas demand in the EU and the UK.
Equinor has a global portfolio of oil and gas projects it plans to use to boost production through the decade, but it has also been repositioning E&P resources to existing discoveries in the Norwegian Continental Shelf to secure long-term pipeline gas supply to Europe.
