The owners in the Snøhvit license have decided to stop the work on a possible capacity increase on Melkøya. The license has concluded that the current gas discoveries do not provide a sufficient basis for further capacity expansion.

The license has not determined whether LNG or a pipeline solution is the best concept for a potential capacity increase at a future date.

Over the last eighteen months, the Snøhvit license partners have carried out studies for the expansion of the gas export capacity from Melkøya. The increased capacity would enable the accelerated gas production of increased reserves in the Snøhvit license, together with existing discoveries in the area.

Thorough studies have been carried out of both an LNG train II and a dew-point facility/pipeline solution, and the Snøhvit license has devoted considerable resources to finding solutions that could make a capacity expansion profitable. The pipeline solution was studied in collaboration with Gassco.

Tags: Statoil