Home » Energy » Renewables » Subsea7, Aker join Equinor in Norway’s Northern Lights 2 project under EPC contracts soon after $700m investment

Subsea7, Aker join Equinor in Norway’s Northern Lights 2 project under EPC contracts soon after $700m investment

Home » Energy » Renewables » Subsea7, Aker join Equinor in Norway’s Northern Lights 2 project under EPC contracts soon after $700m investment

Equinor has awarded Subsea7 and Aker Solutions Engineering, Procurement, and Construction (EPC) contracts for the Northern Lights Phase 2 project in Norway. This makes Subsea7 and Aker Technical Service Providers (TSPs) of the Northern Lights 2 project. Subsea7’s contract stands in the range of NOK 523 million ($50 million) to NOK 1.569 billion ($150 million). Aker Solutions EPC contract as a TSP for the Northern Lights phase 2 is in the range of NOK 1.5 billion ($143 million) to NOK 2.5 billion ($238 million). Additionally, this contract will be the fourth CCS project for Aker. It will also be the second time Aker is involved in the Northern Lights project after it was part of the first phase.

While owning a third of the project, Equinor will also remain as a TSP and overseer of Northern Lights 2 construction and operations. This comes just days after Equinor, Shell and TotalEnergies launched Norway’s Northern Lights Phase 2 project with a NOK 7.5 billion ($716 million) investment.

Norway’s Northern Lights 2 CCS project factsheet

Phase: Northern Lights phase 2

Location: Norway

Cost: NOK 7.5 billion ($716 million)

Developers: Equinor, Shell PLC, and TotalEnergies

TSP: Equinor

Northern Lights 2 EPC contractors: Subsea7, Aker Solutions

CCS facility capacity: 5 Million Metric Tons per Annum (MMtpa)

Project commissioning date: 2028

Equinor’s Subsea7, Aker EPC contracts and the $700 million investment

Subsea7’s EPC contract will involve construction work of a 5 km CO2 pipeline for the Northern Lights Phase 2 carbon capture and storage (CCS) facility. This is in line with the initial-made investment that had at its core the expansion of the CCS facility to hold over 5 MMtpa from 1.5 MMtpa of CO2.

Subsea 7 joins Equinor as Northern Lights 2 TSP soon after $700m investment
Subsea7 will also oversee the pre-commissioning of the Northern Lights 2 once it has achieved its EPC targets

Also as part of the Subsea7’s EPC contract will be the installation of satellite structures, umbilicals and tie-in. This will run parallel to the $716 million investment ambition by Equinor, Shell, and TotalEnergies.

As part of its vision for the expansion of the Northern Lights Phase 2 project, the consortium saw it fit to expedite the project by leveraging the facility’s existing onshore and offshore infrastructures. New construction will feature in the installation of the storage tanks, pumps, and wells. Subsea7 will also oversee the pre-commissioning of the Northern Lights 2 once it has achieved its EPC targets.

Additionally, of the recent announcement by Subsea7, project management and engineering services for the project will be underway at its Norway office immediately. The stipulated timeline for the pipeline construction will see fabrication done first at the company’s spoolbase in Vigra, Norway. Thereafter, the offshore operations will start in 2026 through to 2027. This aligns with the three-member consortium’s phase 2 operational due date of 2028.

Aker Solutions EPC contract will involve onshore construction activities. This also includes the different locations where this will be done. Fornebu and Stord in Norway and Mumbai in India will be Aker’s areas of focus. Aker’s construction timeframe for the Northern Lights 2 project as stipulated in the contract will also be from 2025 to 2028.

Also read: Latest on Ørsted’s carbon capture and storage facility at the Ørsted Kalundborg CO2 Hub in Denmark

Northern Lights 2 project FID, investments

The recently signed Northern Lights 2 project Financial Investment Decision (FID) also came about after the consortium reached a milestone decision. This is the cross-border carbon transport and storage agreement with Swedish-based energy provider, Stockholm Exergi AB. The capacity for transport and storage of the CO2 stands at 900,000 metric tons. This will start once the Northern Lights 2 carbon capture and storage facility becomes operational in 2028.

The Northern Lights 2 also secured EUR 131 million ($141 millon) from the European Union through its Connecting Europe Facility for Energy program (CEF Energy). This amount accounts for a portion of the $716 million invested in the project.

It is impressive to see oil and gas companies at the forefront of efforts to reduce global carbon emissions.

Also read: Norsk Hydro to build new aluminium wire casthouse facility in Norway for NOK 1.7 billion