2026-10-08
- On 7 October 2026 Equinor raised the cost estimate for the Snøhvit Future project to NOK 26.5 billion (about $2.77 billion) in 2026 value, according to the company.
- The figure compares with just over NOK 20 billion (2025 value) announced in December 2025 and NOK 13.2 billion in the 2022 Plan for Development and Operation (PDO).
- Onshore compression is still scheduled to start in 2029 and electrification of Hammerfest LNG in 2030, the schedule being unchanged.
- The project is about 60% complete; the compressor module arrived at Melkøya in August 2026 and the steam boiler module is due in spring 2027.
- Electrification is expected to cut annual carbon dioxide emissions by 850,000 tonnes.
Equinor raised the cost estimate for the Snøhvit Future project, which covers the Hammerfest LNG facility on Melkøya island in northern Norway, on 7 October 2026. The new estimate is NOK 26.5 billion (about $2.77 billion) in 2026 value, more than 30% above the just-over NOK 20 billion (2025 value) given in December 2025, according to reports.
Equinor reportedly cited the complexity of carrying out a large project inside an operating facility, weather, and difficult rock conditions in the power cable tunnel. The schedule is said to be unchanged, with onshore compression starting in 2029 and electrification in 2030.
The updated estimate was reportedly submitted to Norway’s Ministry of Energy together with the government’s proposed 2027 national budget. Because the investment is meant to keep a 4.3 million tonnes per year LNG (Liquefied Natural Gas) export facility running over the long term, it is also being watched from the perspective of European gas supply.
Snøhvit Future is described as having two pillars for the long-term operation of Hammerfest LNG. The first is onshore compression, which is intended to maintain plateau production at the plant as reservoir pressure falls. The second is electrification of Hammerfest LNG, replacing power currently produced from gas with electricity from the mainland grid.
Detailed work items reportedly include a new Melkøya substation, a subsea power cable, and a 3.2 km power cable tunnel between Meland and Hyggevatn. Statnett is also said to be building a substation at Hyggevatn and a power line from Skaidi.
Ownership is reported as Equinor (operator) 36.79%, Petoro 30%, TotalEnergies EP Norge 18.4%, Vår Energi 12%, and Harbour Energy Norge 2.81%. Because the work is carried out inside a plant that is already operating, Trond Bokn, Equinor’s senior vice president for project development, said the project is more complex than anticipated, and that Equinor takes the cost development of Snøhvit Future seriously.
Equinor maintains that Snøhvit Future is still a profitable project. More than 70% of development-phase value creation is expected to go to Norwegian companies, and more than a third of that to Northern Norway. Hammerfest LNG is said to employ about 750 people and to support roughly 1,450 jobs including ripple effects.
The cost estimate is NOK 26.5 billion (about $2.77 billion) in 2026 value. In December 2025 it was just over NOK 20 billion in 2025 value (about $2.1 billion), and the 2022 Plan for Development and Operation (PDO) put it at NOK 13.2 billion (about $1.38 billion). Converted to today’s terms, the 2022 plan corresponds to NOK 15.2 billion (about $1.58 billion).
Hammerfest LNG has a production capacity of 4.3 million tonnes per year (mtpa). The carbon dioxide reduction from electrification is 850,000 tonnes per year, equal to about 2% of Norway’s total emissions, according to reports.
The project is about 60% complete, and the compressor module was installed at Melkøya in August 2026. The steam boiler module is due in spring 2027. The power cable tunnel is 3.2 km long. The increase amounts to more than 30% over the December 2025 estimate.
Timeline
- 2022: The PDO set the cost at NOK 13.2 billion.
- 22 December 2025: Equinor issued a status update raising the estimate to just over NOK 20 billion (2025 value) and postponing the start of onshore compression by one year to 2029.
- August 2026: The compressor module arrived at Melkøya.
- 7 October 2026: Equinor raised the estimate to NOK 26.5 billion (2026 value) and said the schedule is unchanged.
- Spring 2027: The steam boiler module is due.
- 2029: Onshore compression is planned to start.
- 2030: Electrification of Hammerfest LNG is planned.
Note
- PDO (Plan for Development and Operation): the plan submitted to Norwegian authorities before an oil and gas development starts, and the baseline for the initial cost estimate.
- Onshore compression: compressing gas from an offshore field at an onshore facility so that output can be maintained as reservoir pressure declines.