More Than 50% of Norway’s Offshore Crude Production Expected To Be Powered From Shore
A report from the Norwegian Petroleum Directorate details how production powered from shore would cut down on carbon dioxide emissions. All of the planned projects from the onshore power grid are expected by the mid-2020s.
Norway is on track to produce more than 50% of its petroleum from its onshore power grid by the mid-2020s, according to a report from the Norwegian Petroleum Directorate (NPD). The report, which was prepared in collaboration with the Norwegian Water Resources and Energy Directorate (NVE), the Norwegian Environment Agency, and the Petroleum Safety Authority, indicates companies are considering multiple electrification projects that could reduce CO2 emissions.
Ingrid Sølvberg, the general director for the NPD said that, in a few years, power from shore can reduce CO2 emissions by 10% of total Norwegian greenhouse gas emissions.
Currently, eight fields on the Norwegian shelf receive power from the Norwegian power grid, with plans to supply another eight fields with power in the same manner. This would reduce CO2 emissions by 3.2 Mtpa.
Norway’s Troll, Gjøa, Ormen Lange, Valhall, Goliat, and Johan Sverdrup fields have facilities supplied with power directly from shore. The Vega field is also operated with power from shore via its host installation Gjøa, and Hod via Valhall.
The Martin Linge field, which is under development, will be supplied with power directly from shore. The Edvard Grieg, Ivar Aasen, Gina Krog, Solveig and Hanz fields will receive power from the area solution on the Utsira High, which is part of the Johan Sverdrup field’s second phase. The Duva and Nova fields will be operated with power from shore via Gjøa.
Projects In The Planning Phase
An additional six electrification projects are approaching an investment decision, which would also reduce emissions by about 4.9 Mtpa. These projects are on Troll B, Troll C, Oseberg Field Centre and Oseberg Sør, Sleipner, and the Melkøya onshore facility.
Sleipner is under regulatory review after reaching an investment decision in May. The project will also provide power from shore to the associated fields Gudrun, Sigyn, Gugne, and Utgard.
All the planned projects may be in operation from the mid-2020s, with the report showing the projects representing the greatest emission reductions are the Melkøya onshore facility, Troll B, Troll C, Oseberg Field Centre, and Oseberg Sør.
Onshore Power System Means Higher Prices And Needed Infrastructure
NVE Director General Kjetil Lund said, however, “Electrification of the shelf will have consequences for the power system both in the form of somewhat higher electricity prices and a need for increased investments onshore.”
The report shows the six projects in advanced stages of the planning phase will increase annual power consumption in Norway by up to 4 terawatt-hours (TWh), or about 3% per year. It also shows power from shore projects will lead to an increase in electricity prices in Norway and smaller differences in electricity prices between the north and south in Norway.
The onshore power system can handle the increase in consumption, but most power from shore projects that are under planning will require measures in the power grid. Electrification of the onshore facility on Melkøya, for example, requires the construction of a new power line.
The onshore facility on Melkøya, Troll B and C, Oseberg Field Centre, and Oseberg Sør will also have to be disconnected in strained situations in the power grid and potentially use their own back-up power supply.