Equinor awards Subsea 7 and Aibel contracts for Northern Lights CCS project

29 January 2021 (Last Updated January 29th, 2021 11:55)

Equinor has awarded subsea contracts to Subsea 7, a subsea engineering, construction, and services company, and service company Aibel for the Northern Lights carbon capture and storage (CCS) project offshore Norway.

Equinor awards Subsea 7 and Aibel contracts for Northern Lights CCS project
Site preparation for the Northern Lights project started earlier this month. Credit: Equinor ASA.

Equinor has awarded subsea contracts to Subsea 7, a subsea engineering, construction, and services company, and service company Aibel for the Northern Lights carbon capture and storage (CCS) project offshore Norway.

Being developed by Equinor, Shell, and Total, the project is intended to capture industrial and imported carbon dioxide (CO₂) emissions for injection into reserves from a terminal in Øygarden, on Norway’s west coast.

Subsea 7 has been awarded a contract worth about Nkr500m ($57.8m) for the engineering, fabrication, and installation of a 100km CO₂ pipeline, which will run from Øygarden to the CO₂ storage complex.

The firm will also install 36km-long umbilicals to connect the injection well to the Oseberg field, as well as undertake tie-in and pre-commissioning activities.

Subsea 7 plans to immediately commence project management and engineering at its offices in Stavanger, Norway, while pipeline fabrication will take place at its spoolbase at Vigra, Norway.

Offshore operations are planned to be executed in 2022 and 2023.

Subsea 7 Norway vice-president Monica Bjørkmann said: “The Northern Lights project marks the start of a new value chain for lowering carbon emissions from Norway as well as Europe.”

Additionally, Aibel has secured Nkr140m ($16.1m) EPCI contract from Equinor for the Northern Lights subsea control system located on the Oseberg A platform.

Equinor said that the contract has been awarded as a call-off against the Oseberg portfolio agreement, which was signed in July 2020.

Under the contract, Aibel will undertake all necessary upgrades on the Oseberg A platform to pull in and operate the umbilical system that connects the platform and the Northern Lights subsea facilities.

Aibel plans to perform project management and engineering at its offices in Bergen and Stavanger while prefabrication will be performed at the Haugesund yard.

Project work is planned to commence in January and is slated for completion in late 2023.

The partners made a final investment decision on the Northern Lights CCS project in May.

Northern Lights project director Sverre Overå said: “The Northern Lights project is the first of its kind offering a solution to cut emissions from industrial sources in Norway and Europe.”