Equinor ASA EQNR has announced a 10-day extension to the ongoing outage at its Hammerfest LNG facility in northern Norway. Operations are expected to resume late on Jan. 19. The company stated in a regulatory filing on Wednesday that the delay stems from more complex-than-anticipated repairs to a failed compressor.
The Hammerfest LNG plant, also known as Melkoeya LNG, plays a crucial role in Norway’s gas exports, contributing approximately 6.5 billion cubic meters of gas annually. This volume is sufficient to supply about 6.5 million European homes and accounts for nearly 5% of Norway’s total gas exports.
The outage, initially reported on Jan. 2, involved a compressor responsible for re-injecting the CO2 extracted from the gas stream into the ground. While repairs were originally expected to take one week, the need for additional parts and the complexity of the work have extended the timeline.
Located in Arctic Norway, the Hammerfest plant processes gas from the Snoehvit field in the Barents Sea, about 143 kilometers offshore. The facility is owned by Equinor, alongside Petoro, TotalEnergies, Vaar Energi and Harbour Energy.
Norway’s pivotal role in Europe’s energy security has become even more pronounced since the Ukraine crisis disrupted Russian gas supplies. As Europe’s largest natural gas supplier, Norway exports most of its gas via offshore pipelines in the North Sea, with Hammerfest LNG serving as Europe’s largest liquefied natural gas export facility.
Equinor’s update on Gassco's regulatory website reaffirms the importance of timely resumption, especially during winter, when gas demand peaks across Europe. The extended outage highlights the challenges of maintaining critical infrastructure under extreme Arctic conditions.
EQNR’s Zacks Rank & Key Picks
EQNR currently carries a Zacks Rank #3 (Hold).
Investors interested in the energy sector may look at some better-ranked stocks like TechnipFMC plc FTI, Sunoco LP SUN and Oceaneering International, Inc. OII. While TechnipFMC and Sunoco presently sport a Zacks Rank #1 (Strong Buy) each, Oceaneering carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
TechnipFMC is a leading manufacturer and supplier of products, services and fully integrated technology solutions for the energy industry. It focuses on the subsea segment in offshore basins worldwide. FTI’s growing backlog ensures strong revenue visibility and supports margin improvements.
Sunoco is a leading wholesale motor fuel distributor in the United States, boasting a vast distribution network spanning 40 states. With long-term contracts servicing more than 10,000 convenience stores, it distributes over 10 fuel brands, ensuring a stable revenue stream. Sunoco is poised to benefit from the strategic acquisitions aimed at diversifying its business portfolio.
Oceaneering International delivers integrated technology solutions across all stages of the offshore oilfield lifecycle. With a geographically diverse asset portfolio and a balanced revenue mix between domestic and international operations, the company effectively mitigates risk. As a leading provider of offshore equipment and technology solutions to the energy sector, OII benefits from strong relationships with top-tier customers, ensuring revenue visibility and business stability.
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