BAKU, Azerbaijan, October 7. Equinor has raised the cost estimate for the Snøhvit Future project to NOK 26.5 billion ($2.5 billion) in 2026 value, while maintaining the project’s existing schedule, the company said.
The partnership expects onshore compression at the Hammerfest LNG facility to begin in 2029, followed by electrification in 2030.
The updated estimate was submitted to Norway’s Ministry of Energy as part of the government’s proposed national budget for 2027.
Equinor had estimated the project at just over NOK 20 billion in 2025 value in December 2025. The original investment estimate included in the project’s Plan for Development and Operation (PDO), submitted in 2022, was NOK 13.2 billion. Adjusted to current krone values, the original estimate is equivalent to approximately NOK 15.2 billion.
Compared with the December 2025 estimate of slightly above NOK 20 billion, the latest figure of NOK 26.5 billion represents an increase of more than 32%. Against the inflation-adjusted 2022 estimate of NOK 15.2 billion, the current cost estimate is approximately 74% higher.
“We take the cost development of Snøhvit Future seriously. The project is being carried out at an operating facility and is more complex than anticipated. It has also been affected by unforeseen issues and challenges,” Trond Bokn, Equinor’s senior vice president for project development, said.
According to Bokn, operational challenges at the Hammerfest LNG plant, adverse weather conditions and difficult rock conditions encountered during construction of the power cable tunnel have affected the project’s progress and costs.
Equinor said it is working closely with suppliers to manage the complexity of the project and implement measures aimed at ensuring safe and efficient execution.
Despite the higher costs, the company said Snøhvit Future remains a profitable project and is expected to support employment in Hammerfest, Norwegian value creation and long-term energy supplies to Europe.
The project is currently around 60% complete. The compressor module was installed at Melkøya in August 2026, while the steam boiler module is expected to arrive in spring 2027.
Snøhvit Future consists of two main components: onshore compression and electrification of Hammerfest LNG. The compression facilities are intended to maintain plateau production as reservoir pressure declines, while electrification is expected to reduce the LNG plant’s annual carbon dioxide emissions by approximately 850,000 tonnes.
The planned emissions reduction is equivalent to around 2% of Norway’s annual emissions, according to Equinor.
The project also includes a new substation at Melkøya, a subsea power cable to the facility and a 3.2-kilometre power cable tunnel between Meland and Hyggevatn. Statnett is constructing a substation at Hyggevatn and a power line from Skaidi to Hyggevatn.
Equinor expects more than 70% of the project’s value creation during the development phase to go to Norwegian companies, with more than one-third of that share expected to benefit companies in Northern Norway.
The Hammerfest LNG facility employs around 750 people during normal operations and supports approximately 1,450 jobs when wider economic effects are included.
The Snøhvit partnership comprises Equinor Energy AS with a 36.79% interest, Petoro AS with 30%, TotalEnergies EP Norge AS with 18.4%, Vår Energi ASA with 12%, and Harbour Energy Norge AS with 2.81%.
The Snøhvit Future project is designed to extend the operating life of the Hammerfest LNG facility, support continued gas exports and maintain energy supplies to Europe beyond 2050.
