Offshore energy services firm Subsea7 has signed a contract with Equinor to act as a technical service provider (TSP) for the Northern Lights Phase 2 carbon capture and storage (CCS) project, offshore Norway.
Subsea7’s scope includes engineering, procurement, construction and installation of a five-kilometer CO2 pipeline, as well as installation of integrated satellite structures, umbilicals, tie-in and pre-commissioning activities.
According to Subsea7, the contract is ‘sizeable’, meaning it is valued between $50 million and $150 million.
Project management and engineering will begin immediately at Subsea7’s office in Stavanger, Norway.
Fabrication of the pipeline will take place at Subsea7’s spoolbase at Vigra in Norway, while the offshore operations will be executed in 2026 and 2027.
“We are excited to continue our collaboration with Equinor TSP and the Northern Lights’ owners Equinor, Shell and TotalEnergies on phase 2 of this ambitious and pioneering project.
“We look forward to working together to increase the development’s carbon storage capacity to a minimum of five million tonnes per year, and to support the continued development of a new value chain for Norway and Europe,” said Erik Femsteinevik, Vice President for Subsea7 Norway.
Northern Lights phase 2 is enabled by a grant from the Connecting Europe Facility for Energy (CEF Energy) funding scheme.
To remind, Equinor, Shell and TotalEnergies, made a final investment decision (FID) to progress phase two of the Northern Lights CCS development earlier in March, investing $712 million for the scheme.
Phase two of the development will increase the total injection capacity from 1.5 million tonnes of CO2 per year (Mtpa) to at least 5 Mtpa. The expansion through phase two builds on existing onshore and offshore infrastructure and includes additional onshore storage tanks, a new jetty, and additional injection wells.
