Equinor Ups Snøhvit Future Cost Estimate to $2.8B, Timeline Unchanged
October 7, 2026
Equinor has raised the cost estimate for the Snøhvit Future project to $2.77 billion (NOK 26.5 billion) in 2026 value, citing greater-than-expected complexity and operational, weather and construction challenges, while keeping the project's timetable unchanged.
The latest estimate compares with just over $2.1 billion (NOK 20 billion) in 2025 value announced in December last year. When the plan for development and operation was submitted in 2022, investment was estimated at $1.38 billion (NOK 13.2 billion), equivalent to $1.58 billion (NOK 15.2 billion) in today's value.
Onshore compression is still scheduled to start in 2029, followed by electrification in 2030. Snøhvit Future is around 60% complete.
Equinor operates the Snøhvit partnership with a 36.79% interest, alongside Petoro with 30%, TotalEnergies EP Norge with 18.4%, Vår Energi with 12% and Harbour Energy Norge with 2.81%.
The updated cost estimate was submitted to Norway's Ministry of Energy in connection with the government's proposed 2027 national budget.
"We take the cost development of Snøhvit Future seriously. The project is being carried out at an operating facility and is more complex than anticipated. It has also been affected by unforeseen issues and challenges," said Trond Bokn, Equinor's senior vice president for project development.
Operational challenges at the Hammerfest LNG plant, weather conditions and difficult rock conditions encountered in the power cable tunnel have contributed to the higher costs.
The project combines onshore compression and electrification of Hammerfest LNG. Compression is intended to maintain plateau production as reservoir pressure declines, while electrification is expected to cut annual carbon dioxide emissions by 850,000 tonnes.
The compressor module was installed at Melkøya in August, while a steam boiler module is expected to arrive in spring 2027. Work is also progressing on a new substation at Melkøya, a subsea power cable and a 3.2-km power cable tunnel between Meland and Hyggevatn.
