According to Reuters and others, Equinor will no longer pursue electrification of Snorre A and B, Heidrun, Aasgard B, and Kristin platforms, but still plans to proceed with projects at Grane and Balder fields.
A number of BOE posts since Jan. 2022 have questioned Norway’s electrification strategy for offshore platforms. Our reasons:
- Most offshore platforms produce sufficient gas to support their power demands
- Assuming gas that is not used to power a platform is marketed and consumed elsewhere, the net (global) reduction in CO2 emissions from electrifying offshore platforms is negligible. (Perhaps there is actually a small increase in net emissions given the power required to transport the gas to markets and the emissions associated with onshore power generation).
- Offshore power demands are highly variable, especially when drilling operations are being conducted.
- Gas turbines are reliable, and capable of responding to variable power demand. Excess generation capacity is typically provided.
- Power from shore increases the cost of platform operations and could decrease ultimate recovery of oil and gas resources.
- Per NPD, electrification of the shelf will increase electricity prices for onshore consumers and increase the need for onshore facility investment.
- Gas turbines or diesel generators are still necessary to satisfy emergency power needs at the platforms.
- Long power cables are vulnerable to damage (accidental or intentional), as are onshore power stations.
The reliability, cost, and cable vulnerability concerns have clearly been validated. The reality is that powering distant platforms from shore increases operating costs, safety risks, and onshore electricity prices with no net environmental benefit.
It also seems rather hypocritical for a major natural gas exporter to prevent offshore operators from powering their platforms with gas produced at their platforms.
Bud's Offshore Energy (BOE) 