Equinor raises Snøhvit Future project cost to NOK 26.5 billion ($2.7 billion)
Equinor announced that the cost estimate for its Snøhvit Future development at Hammerfest LNG has been increased to NOK 26.5 billion, equivalent to $2.7 billion in 2026 value. The revision, the third since the project was sanctioned in 2022, reflects operational challenges, adverse weather and difficult rock conditions. The project is about 60% complete and the timetable remains unchanged, with on‑shore compression slated for 2029 and electrification in 2030. Senior Vice‑President Trond Bokn said the project remains profitable and will continue to support jobs and European energy supplies.
Why it matters
Equinor says the higher capex does not alter the project schedule, so investors should not expect delays. The company also states the project stays profitable, implying the cost increase will not materially affect earnings expectations. However, the larger investment requirement may increase cash‑flow needs during the development phase.
Key facts
- 1The cost estimate was raised to NOK 26.5 billion (US$2.7 billion) in 2026 value. rivieramm.com
- 2The increase adds US$1.1 billion to the initial estimate. rivieramm.com
- 3The project is approximately 60% complete. rivieramm.com
- 4On‑shore compression is scheduled to start in 2029 and electrification in 2030. rivieramm.com
- 5Equinor expects annual CO₂ emissions reduction of about 850,000 tonnes, roughly 2% of Norway’s total emissions. rivieramm.com
- 6The Snøhvit partnership ownership: Equinor Energy 36.79%, Petoro 30%, TotalEnergies 18.4%, Vår Energi 12%, Harbour Energy 2.81%. rivieramm.com
Open questions
- USD conversion varies between $2.5 billion (material 3) and $2.7 billion (materials 2, 5).
Summary written by AlphAI from 5 of 5 sources. Not investment advice. Figures are as stated by the linked sources.