Norway is the world's second largest natural gas exporter. However, the project has been repeatedly delayed due largely to the immense technical and cost challenges. Reportedly, under current consideration is a switch to all liquefied natural gas (LNG) production to improve its economic feasibility, as well as a change of partners. A new agreement is now expected in autumn 2012 following the expiration of the original partners' agreement in June.
Most of it was transported to Europe via its extensive export pipeline infrastructure and a smaller amount (4.3 percent) via LNG tanker. Liquefied natural gas (LNG)
According to NPD estimates, 2011 shipments of Norwegian LNG totaled an estimated 150 Bcf, up from 138 Bcf in 2010. OECD European countries in 2010 received about 74 percent of the total, with Spain importing almost half of that. The United States imported about 5 percent or 26.8 Bcf. Norway has long-term contracts with Spain's Iberderola and the U.S.'s El Paso. Norway became an LNG exporter in 2007 with the beginning of commercial production from the Snohvit gas field, Norway's first natural gas development in the Barents Sea. Statoil operates an LNG export terminal and liquefaction facility at Melkoya, near Hammerfest. The Melkoya facility, the first large-scale LNG export terminal in Europe, has a capacity of about 200 Bcf/y and is connected by pipeline with the Snohvit gas field. The Snohvit field produced 0.2 Tcf in 2010. The Melkoya facility is producing at full capacity and Statoil is currently studying the expansion possibilities of adding a second train. Field development plans may be decided by the end of 2013, and additional LNG production could begin in 2018. The project's expansion would likely be fed by the nearby Askeladd field, which is due onstream in 2014 or 2015, and other new projects in the area. Melkoya ,Statoil and the entire Snøhvit consortium see huge growth potential for this market, making their initial EUR 7.5bn outlay on the...
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