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Equinor (EQNR) Boosts Electrification Efforts Offshore Norway

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Equinor ASA (EQNR - Free Report) , the Norwegian state-owned energy giant, has announced a significant step in its efforts to curb carbon emissions from the Norwegian Continental Shelf. Equinor aims to cut down approximately 160,000 tons of CO2 per year through the utilization of power from shore.

A key aspect of this initiative is the partial electrification of assets on Utsira High, a strategic area for oil and gas production off the coast of Norway. Equinor has confirmed that installations, including the Sleipner field center and the Gudrun platform, among others, are now partly operating on power sourced from shore. This transition marks a milestone in EQNR’s journey toward sustainable energy practices.

As part of the transition, one of the two operative gas turbines on the Sleipner A platform will gradually be decommissioned, with the remaining turbine serving as a backup power source during the initial phase. Ultimately, Equinor aims for Sleipner to operate fully on power from shore, further reducing emissions associated with its operations.

Kjetil Hove, the executive vice president for Exploration & Production Norway at Equinor, stressed the significance of transitioning, highlighting the potential for developing new discoveries and resources with low-emission production through power from shore. He also noted the potential for maintaining gas exports from the area in the long term. This transition not only improves environmental sustainability but also secures the ongoing economic viability of the region's energy sector.

The Sleipner field center was connected to onshore power via a 28-kilometer cable from the Gina Krog platform, marking a significant engineering achievement. Additionally, the Gudrun platform was linked to electricity through an existing cable connection to Sleipner. These infrastructure enhancements pave the way for more efficient and eco-friendly operations across the region.

The benefits of this electrification initiative extend beyond emission reduction. By tapping into power from shore, Equinor can optimize the utilization of Norwegian gas resources, which play a crucial role in Europe's energy transition.

The investments in this project, aimed at reducing NOx emissions by 700 tons per year, amount to NOK 1.08 billion (approximately $101.19 million). The company has collaborated with industry partners like Aibel and NKT to execute the necessary engineering, procurement, construction and installation work.

Geir Tungesvik, the executive vice president for Projects, Drilling & Procurement at Equinor, highlighted the importance of electrification in meeting national emission goals. He emphasized that electrification stands out as the most potent strategy to halve greenhouse gas emissions from Norwegian oil and gas production by 2030.

Zacks Rank & Key Picks

Equinor currently carries a Zack Rank #4 (Sell).

Some better-ranked stocks in the energy sector are Sunoco LP (SUN - Free Report) , Murphy USA Inc. (MUSA - Free Report) and Global Partners (GLP - Free Report) , each sporting a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

Sunoco is among the biggest motor fuel distributors in the U.S. wholesale market in terms of volumes. By distributing more than 10 fuel brands via 10,000 convenience stores under long-term distribution contracts, the partnership will continue to generate stable cash flow. 

The Zacks Consensus Estimate for SUN’s 2024 earnings per share (EPS) is pegged at $4.96. The stock has witnessed upward earnings estimate revisions for 2024 and 2025 in the past 30 days.

Murphy USA is a leading independent retailer of motor fuel and convenience merchandise in the United States.

The Zacks Consensus Estimate for MUSA’s 2024 EPS is pegged at $26.35. The company has a Zacks Style Score of B for Growth and B for Value. It has witnessed upward earnings estimate revisions for 2024 and 2025 in the past seven days.

Global Partners is a leading operator of gasoline stations and convenience stores. Over the past 60 days, GLP has witnessed upward earnings estimate revisions for 2023 and 2024.

The Zacks Consensus Estimate for Global Partners’ 2024 and 2025 EPS is pegged at $3.90 and $4.47, respectively. GLP currently has a Zacks Style Score of A for Value.

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