Snøhvit Future faces delays and higher costs, but remains vital for low-emission gas supply, regional jobs, and Norway’s energy future.
Updated estimates for progress, schedule, and costs have been released for the Snøhvit Future development, confirming both a delay in execution and a notable rise in projected investment requirements. Compared with the original plan, the project has been postponed, and expected costs have increased by around NOK four billion since 2024. Despite these challenges, the development remains strategically important for Norway’s long-term energy ambitions, reinforcing the country’s role as a dependable supplier of natural gas with very low greenhouse gas emissions. It also continues to support employment in Hammerfest, generate significant Norwegian value creation, and help secure stable energy supplies to Europe well into the period approaching 2050.
The project is designed around two main objectives. First, the installation of onshore compression will enable Hammerfest LNG to maintain plateau gas production as reservoir pressure declines over time. Without this compression capacity, production would gradually fall, reducing the long-term output and economic value of the field. Second, the electrification of Hammerfest LNG represents a major emissions-reduction initiative. Once operational, electrification is expected to cut annual carbon dioxide emissions by approximately 850,000 tonnes. This reduction corresponds to roughly two per cent of Norway’s total annual emissions, making it one of the most significant single industrial decarbonisation measures in the country.
From an industrial and regional development perspective, the project also delivers substantial domestic benefits. During the development phase, around 70 per cent of total value creation is expected to accrue to Norwegian companies. More than one-third of this share will go to businesses in Northern Norway, strengthening the local supplier industry and contributing to sustained economic activity in the region.
According to Trond Bokn, senior vice president for project development at Equinor, the project has now reached roughly the halfway mark in terms of completion. However, he emphasised that execution has proven more demanding than initially anticipated. Carrying out a large-scale development within an operating LNG facility presents inherent complexity, and this has been compounded by an extensive turnaround at Hammerfest LNG on Melkøya during the same period. The planning and execution challenges associated with coordinating these parallel activities were underestimated, and temporary safety-related shutdowns also disrupted progress.
As a result, the start-up of onshore compression is now expected in 2029, representing a one-year delay compared with the original schedule. Each autumn, the Norwegian authorities publish status updates on development projects that have submitted a Plan for Development and Operation (PDO) as part of the national budget process. While updated cost figures for this project were not finalised in time for this year’s reporting, it had already been communicated that overall investments would increase.
The revised cost estimate now exceeds NOK 20 billion in 2025 prices. When the PDO was submitted to authorities in 2022, the original estimate stood at NOK 13.2 billion. Adjusted for inflation, this earlier figure corresponds to approximately NOK 14.7 billion, highlighting the scale of the cost escalation that has occurred.
Several factors have contributed to slower progress and rising costs over the past year. The winter of 2024–2025 was harsher than normal, with challenging weather conditions limiting construction and installation work in certain areas of the plant. Engineering costs have increased as well, largely due to the greater-than-expected complexity involved in integrating new systems into existing facilities. In addition, the planned summer 2025 turnaround at Melkøya was extended, delaying the restart of project activities on site. Finally, persistently high inflation has driven up the cost of equipment procurement, adding further pressure to the overall budget.
Despite these headwinds, the project continues to play a central role in supporting Norway’s climate goals, industrial development, and long-term gas supply commitments to European markets.
