EurOil: more Hammerfest LNG delays

Equinor has warned of a further delay in the restart of the Hammerfest LNG plant in Norway’s far north, dashing hopes that the terminal would help ease supply constraints in Europe at the tail-end of winter.

Hammerfest LNG had to be closed in September 2020 after a serious fire tore through the facility, requiring extensive repairs and reconstruction. Equinor had initially hoped to have the 4.2mn tonne per year plant back up and running by October last year, but later postponed the relaunch after mapping out the extent of the damages.

In a statement on January 31, the Norwegian state producer said progress had been affected by coronavirus (COVID-19) infections and the efforts to contain them. At times, half of workers had to be placed in quarantine and isolation, plant manager Thor Johan Haave said. As a result, the restart date has been pushed back from March 31 until May 17, 2022.

“The project work is nearing completion and we’re doing what we can to finish the project,” Haave said. “We are pleased with the good co-operation we have with the Hammerfest municipality, employee representatives, safety delegates and suppliers. Now it is all about completing the job together.”

The lengthy downtime at Hammerfest LNG has deprived Europe of gas supply at a time when the continent is struggling through an unprecedented energy crisis. Wholesale gas prices have surged to record highs in recent weeks, and storage facilities are now less than 40% full.

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