Equinor has increased the investment forecast for its Snøhvit Future development in Norway to $2.7bn (Nkr26.5bn) in 2026 value, the third upward revision since the project was sanctioned.
The update was submitted to the Norwegian Ministry of Energy during work on the government’s proposed national budget for 2027.
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In December 2025, Equinor estimated costs at just over Nkr20bn in 2025 value.
When the plan for development and operation was filed in 2022, project investment was estimated at Nkr13.2bn, equal to Nkr15.2bn in current terms.
Equinor project development senior vice-president Trond Bokn said: “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.”
Bokn cited several factors behind the escalation, including operational disruptions at the Hammerfest LNG (liquefied natural gas) facility, unfavourable weather and unexpectedly hard rock encountered during construction of the power cable tunnel.
Despite the budget increase, the company said the delivery timetable has not changed, with onshore compression due to begin operating in 2029 and electrification following in 2030.
Currently, around 60% of the Snøhvit Future project has been completed.
The installation of the compressor module took place in August and the steam boiler module is scheduled to reach the Melkøya site in spring 2027.
Associated infrastructure includes a new electrical substation at Melkøya, a subsea power cable and a 3.2km tunnel linking Meland and Hyggevatn.
Snøhvit Future is designed to sustain plateau production levels at Hammerfest LNG as reservoir pressure drops, and to reduce emissions by around 850,000t of carbon dioxide per year, equivalent to 2% of Norway’s total annual emissions.
The project is forecast to contribute more than 70% of its value creation to Norwegian companies during its development phase.
The Snøhvit partnership comprises Equinor Energy (36.79%), Petoro (30%), TotalEnergies EP Norge (18.4%), Vår Energi (12%) and Harbour Energy Norge (2.81%).
Hammerfest LNG, the operational hub for the initiative, employs approximately 750 people and supports around 1,450 jobs when wider economic effects are considered.
In August 2026, Equinor began production from the Troll phase three, stage two subsea project in the Norwegian North Sea, bringing additional gas to the Troll A platform.
