Norway's Melkøya LNG Terminal in Hammerfest Halted Due to Overheated Transformer

Equinor's LNG terminal in Hammerfest, Europe's largest, suspended production due to an overheated transformer. The facility, which accounts for 5% of Norway's gas exports, is expected to remain halted until Monday evening. The gas originates from the Snøhvit field in the Barents Sea and is owned by Equinor, Petoro, TotalEnergies, Vår Energi, and Harbour Energy.

Norway's largest LNG export facility, the Hammerfest LNG terminal, has temporarily halted operations due to an overheated transformer. The incident occurred over the weekend, leading to a complete shutdown of the facility. Equinor (NYSE: EQNR), the operator of the terminal, announced the suspension in a regulatory statement on Sunday [1].

The terminal, also known as Melkoeya LNG, represents approximately 5% of Norway’s total gas exports. It is expected to resume production at 2100 GMT on Monday, according to information posted on the Gassco gas system website [1]. This shutdown comes shortly after the plant had completed a 15-week maintenance outage on August 4.

The gas processed at the Hammerfest terminal originates from the Snøhvit field in the Barents Sea. The facility is owned by a consortium consisting of Equinor, Petoro, TotalEnergies, Vår Energi, and Harbour Energy. The temporary shutdown is likely to have a minimal impact on Europe's LNG supply, given the region's substantial gas reserves and the terminal's relatively small contribution to total exports.

Investors and financial professionals should closely monitor the situation for any updates on the restart date and potential disruptions to the terminal's operations. The resumption of production is expected to occur on Monday evening, as per the latest information from Gassco [1].

References:

[1] https://www.investing.com/news/stock-market-news/equinors-hammerfest-lng-terminal-offline-restart-expected-monday-93CH-4196661