By Priscila Azevedo Rocha | Updated on Oct 07, 2026 at 11:24 AM
Equinor ASA has again raised the estimated cost of upgrading its Hammerfest liquefied natural gas plant, less than a year after its last revision, highlighting the expense of such huge infrastructure projects in Norway’s far north.
Europe’s biggest gas supplier said Wednesday that the Snohvit Future project, designed to extend the field’s operational life toward 2050 while cutting annual carbon dioxide emissions, will now cost 26.5 billion kroner ($2.8 billion) in 2026 value. That compares with an estimate of 13.2 billion kroner when the plan was submitted in 2022, equivalent to 15.2 billion kroner in today’s value.
The sharp increase in estimated costs raises questions over the economics of the upgrade. Hammerfest has become a key facility for European buyers after the region has become increasingly more reliant on LNG to replace lost pipeline supplies from Russia.
“The project is being carried out at an operating facility and is more complex than anticipated,” Equinor’s senior vice president for project development Trond Bokn said in a statement. “It has also been affected by unforeseen issues and challenges,” including weather conditions in northern Norway.
The project is now 60% complete, and the company said the timetable for completion unchanged. Onshore compression is planned to start in 2029 and electrification in 2030.
Equinor holds 36.79% of Snohvit, next to other partners including Petoro AS, TotalEnergies EP Norge AS, Var Energi ASA and Harbour Energy Norge AS.