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Equinor Advances LNG Decarbonization With Axess-Aibel Deal

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Key Takeaways

  • Equinor is advancing its Snohvit Future project to cut CO2 emissions from Hammerfest LNG operations.
  • Axess won an EoC contract with Aibel, supporting equipment certification on the compressor module.
  • Full electrification is targeted for 2030, extending the Snohvit fields life and energy output to 2050.

Equinor (EQNR - Free Report) , the Norwegian energy giant, is making a significant stride in its decarbonization journey through its flagship Snohvit Future project, which aims to reduce CO2 emissions from oil and gas production on the Norwegian continental shelf. In a fresh development, Axess Group has won an enterprise of competence (EoC) contract with fellow Norwegian firm Aibel, reinforcing their collaboration on Equinor’s carbon-reducing efforts at the Hammerfest LNG facility.

EQNR's Snohvit Future Project: A Key to Paris Agreement Targets

The Snohvit Future project, approved by Norway’s government in August 2023, is central to the country’s goal of halving oil and gas production emissions by 2030 compared to 2005. By electrifying Hammerfest LNG with power from the mainland and implementing onshore compression, Equinor expects to cut 850,000 tons of CO2 emissions annually — about 2% of Norway’s total yearly emissions. The transition is crucial for the nation to meet its obligations under the Paris Agreement.

EQNR Pushes Ahead With Construction Milestones

The electrification initiative involves installing three large modules at Hammerfest LNG: a compressor, a transformer station and electrode steam boilers. A major tunnel, being constructed by LNS, will carry power cables from Hyggevatn to Meland, followed by seabed cables to Melkoya. To meet the increased power demand, transmission system operator Statnett has already started building a new 420 kV line from Skaidi to Hyggevatn.

Meanwhile, Aibel — awarded an EPCI contract in February 2023 — is leading modification work at the site. Its Thailand yard has commenced inspection, testing and certification of more than 250 pieces of lifting equipment on the compressor module, with Axess executing the scope out of its Singapore team.

EQNR Sets 2028-2030 Timeline for Full Implementation

Onshore compression is expected to begin by 2028, with full electrification and elimination of gas turbine-based power at Hammerfest LNG targeted for 2030. Equinor emphasizes that these upgrades will extend the life of the Snohvit field — Norway’s first Barents Sea development, operational since 2007 — and maintain energy supply to Europe through 2050.

As Equinor continues awarding contracts, including a March 2024 call-off option with Multiconsult Norge for engineering and management support, the Snohvit Future project is emerging as a cornerstone in the company’s and Norway’s broader climate roadmap.

EQNR’s Zacks Rank & Key Picks

EQNR currently carries a Zack Rank #3 (Hold).

Investors interested in the energy sector may look at some better-ranked stocks like Subsea 7 S.A. (SUBCY - Free Report) , Energy Transfer LP (ET - Free Report) and RPC Inc. (RES - Free Report) . Subsea 7 presently sports a Zacks Rank #1 (Strong Buy), while Energy Transfer and RPC carry a Zacks Rank #2 (Buy) each. You can see the complete list of today’s Zacks #1 Rank stocks here.

Subsea 7 helps build underwater oil and gas fields. It is a top player in the Oil and Gas Equipment and Services market, which is expected to grow as oil and gas production moves further offshore.

The Zacks Consensus Estimate for SUBCY’s 2025 EPS is pegged at $1.31. The company has a Value Score of A.

Energy Transfer is poised to benefit from long-term fee-based commitments. It is also focused on expanding operations through organic and inorganic initiatives. The firm is looking for solutions to meet growing energy demands from additional demand centers through its pipeline network. Energy Transfer’s systematic investments should boost its total fractionation capacity at Mont Belvieu and raise its top line.

The Zacks Consensus Estimate for ET’s 2025 EPS is pegged at $1.44. The company has a Value Score of A.

RPC generates strong and stable revenues through a diverse range of oilfield services, including pressure pumping, coiled tubing and rental tools. The company is strongly committed to returning value to shareholders through consistent dividends and share buybacks. RPC’s current dividend yield is higher than that of the composite stocks in the industry. Its new Tier IV dual-fuel fleet has boosted profits, with plans to further expand high-efficiency equipment to enhance operational capabilities. 

The Zacks Consensus Estimate for RES’ 2025 EPS is pegged at 38 cents. The company has a Value Score of A. 


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