Buckle up, folks, because the offshore energy sector just got a whole lot more interesting. Subsea7, the offshore energy services heavyweight, has just inked a ‘sizeable’ contract with Equinor to act as the technical service provider (TSP) for the Northern Lights Phase 2 carbon capture and storage (CCS) project, tucked away off the coast of Norway. This isn’t just another day at the office for Subsea7; this contract is a big deal, valued between $50 million and $150 million.
So, what’s on the table? Subsea7 will be rolling up its sleeves to handle the engineering, procurement, construction, and installation of a five-kilometer CO2 pipeline. But that’s not all— they’ll also be tackling the installation of integrated satellite structures, umbilicals, tie-in, and pre-commissioning activities. Talk about a full plate!
The project management and engineering gears are already in motion at Subsea7’s office in Stavanger, Norway. The pipeline fabrication will kick off at their spoolbase at Vigra, also in Norway. But hold your horses, because the real action—the offshore operations—won’t hit the high seas until 2026 and 2027.
Erik Femsteinevik, Vice President for Subsea7 Norway, is chomping at the bit. “We are excited to continue our collaboration with Equinor TSP and the Northern Lights’ owners—Equinor, Shell, and TotalEnergies—on phase 2 of this ambitious and pioneering project,” he said. And he’s not just whistling Dixie; this project aims to ramp up the carbon storage capacity to a minimum of five million tonnes per year. That’s a game-changer for the industry and a significant step forward in the fight against climate change.
Let’s not forget, this phase 2 is backed by a hefty grant from the Connecting Europe Facility for Energy (CEF Energy) funding scheme. Equinor, Shell, and TotalEnergies didn’t just dip their toes in the water; they made a final investment decision (FID) earlier this March, shelling out $712 million for the scheme. That’s some serious skin in the game.
Phase 2 is all about expansion. We’re talking additional onshore storage tanks, a new jetty, and more injection wells. It’s like giving the Northern Lights project a turbo boost, increasing the total injection capacity from 1.5 million tonnes of CO2 per year to at least 5 million tonnes. That’s a 233% increase, folks. Not too shabby.
So, what does this mean for the future? Well, it’s a clear signal that the industry is serious about CCS. This isn’t just about talking the talk; it’s about walking the walk. And with heavy hitters like Equinor, Shell, and TotalEnergies backing the project, you can bet your bottom dollar that others will take notice.
But here’s the million-dollar question: will this project set a new standard for CCS, or will it be a one-off? Only time will tell. One thing’s for sure, though—the stakes are high, and the eyes of the industry are watching. So, let’s grab our popcorn and watch this space. It’s going to be one heck of a ride.
