Norwegian energy company Equinor has signed a contract with Skanska for building site preparation and the construction of jetty facilities for the CO2 receiving terminal in Norway, as part of the Northern Lights carbon capture and storage project.
The project envisions capturing CO2 from Norwegian industrial capture sources, and transporting and storing it in a reservoir some 2,500 meters below the seabed in the northern North Sea.
Apart from the contract with Skanska, Equinor said Tuesday it would also sign a lease agreement with CCB Kollsnes for the area for the temporary project office.
“Today we move parts of the Northern Lights project to Kollsnes, allowing the necessary preparations for the development of the receiving terminal to start pending the possible approval of the Langskip project by the Norwegian government in the course of the year. A total of 10-15 people from Equinor’s Northern Lights project team and the suppliers will work in the project office,” says project director Sverre Overå.
The contract is subject to final government approval of the Langskip (Longship) project.
"The agreements aim to ensure progress as planned for the Northern Lights onshore facilities in the event of project approval," Equinor said.
The CO2 receiving terminal will be located at the premises of Naturgassparken industrial area in the municipality of Øygarden in Western Norway. The plant will be remotely operated from Equinor’s facilities at the Sture terminal in Øygarden.
The plant is designed to store 1.5 million tonnes of CO2 per year, consisting of storage tanks for intermediate storage, an import quay, unloading equipment, injection pumps and equipment, in addition to administration buildings.
Worth about NOK 380 million (USD 41 million), the contract with Skanska includes the establishment of a site, road and infrastructure for the terminal; The construction of an administration building, in addition to warehouse and workshop buildings;The construction of a jetty; The establishment of an exit road to Naturgassparken from country road 561.
Preparations will start after the contract signing. The preparation of the building site is scheduled to start in January 2021, subject to final government approval of the Langskip project.
Equinor will also sign a contract with CCB Kollsnes for the hire of office trailers and storage areas totaling about 16,000 m2.
The lease agreement will run until the summer of 2024, when the terminal and administration building have been completed.
Earlier this year Equinor, Shell and Total decided to invest in the Northern Lights project, the initial investments totaling almost NOK 6.9 billion.