Pipeline option far cheaper than LNG alternative for moving Norway’s Arctic gas volumes – Saudi Gazette

Pipeline option far cheaper than LNG alternative for moving Norway’s Arctic gas volumes – Saudi Gazette

OSLO “” A Rystad Energy cost analysis of the Norwegian pipeline operator Gassco's proposed options to export the country's Arctic natural gas resources, shows that the expansion of Norway's pipeline infrastructure is a more viable solution compared to boosting the capacity of the existing Hammerfest liquefied natural gas (LNG) plant. However, at least 40 billion cubic meters (Bcm) of additional resources from new discoveries would be needed in order to justify such an initiative.

At present, the Hammerfest LNG terminal only has 7.4 Bcm per annum of LNG export capacity, and this limit is expected to be reached in 2026 as gas production in the region will exceed export capacity. The terminal was built to accommodate the gas discoveries of the 1980s, but since then new discoveries have added up. Rystad Energy estimates the remaining discovered natural gas resources in the Barents Sea at around 90 Bcm.

If Norway's gas resources in the Barents are to be further developed and exploited, there are two main options to reach markets: either build a major new gas pipeline as a link to existing infrastructure in the Norwegian Sea or increase LNG capacity at Hammerfest. If export capacity limits aren't increased, projects will have to