Construction firm wins billion-dollar deal with Equinor – delivering 200 man-years in northern Norway – E24

Construction firm wins billion-dollar deal with Equinor – delivering 200 man-years in northern Norway – E24

Leonhard Nilsson & Sonner has been awarded a billion-dollar contract for the electrification of Melkoya, known as the Snowwhite Future Project.

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On behalf of the partnership in Snøhvit, Equinor has awarded a construction contract worth NOK 1.5 billion to Leonhard Nilsson & Sonner (LNS), according to a press release.

– We are pleased to award this contract to Northern Norway. LNS estimates that 70 percent of the value creation will go to Northern Norway, contributing about 200 man-years, says Equinor's project development director Trond Bokn.

Snowwhite Future is an electrification project linked to Equinar's gas plant in Melkoya. and is estimated to cost NOK 13.2 billion. It consists of two developments: Snøhvit Landcompression and Snøhvit Electrification.

– This is the first time LNS is working at Equinor. They provided an excellent offer overall and we look forward to working with a new supplier in the region. LNS also has a number of subcontractors, including Viggo Ericsson in Hammerfest, the Alta plant and Harmon Norge in Tromsø, said Med H., procurement director at Equinar. Otoi says.

The LNS will create a tunnel and a landing for the power cable, which will run from Hiketon to Melkoya. That is, the infrastructure that makes it possible to send electricity from Statnett's transformer station in Hyggevatn to Hammerfest LNG in Melkøya.

A controversial project

The project will reduce CO₂ emissions by 850,000 tonnes per year. Compaction and electrification should start on 1 January 2030.

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Melkoya's electrification was controversial, but was approved this summer. On the one hand, the argument was made to reduce CO₂ emissions from the gas plant in Melgoya.

On the other hand, there are concerns regarding rising electricity prices in the North. The plan to electrify Melgoya has drawn criticism from opposition parties and local politicians.

In March, the central party decided at the ruling party's national meeting not to electrify Melgoya, citing security of supply and electricity prices. However, the government has approved the plan.

Joshi Akinjide

Joshi Akinjide

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