Gas exploration is set for a comeback off Norway after a decade in which companies have largely aimed for oil discoveries, writes Ole Ketil Helgesen.

However, improved infrastructure is needed for companies to actively explore for gas in the Barents Sea.

European gas demand is expected to increase in the coming years, and Norway needs to prove up more resources to maintain production at current levels beyond 2030.

Norwegian Oil & Gas Association (Norog) director Karl Eirik Schjott-Pedersen believes the Barents Sea could become an important gas province.

State-run gas pipeline operator Gassco is looking at gas transport alternatives, and Schjott-Pedersen says Norog is "looking forward to seeing the results”.

Because of the lack of gas transportation infrastructure, Vaar Energi’s Goliat field and Equinor’s Johan Castberg development have been required to reinject produced gas until shipping options are in place, as these two fields do not have sufficient resources to support a pipeline on their own.

Norway-based Vaar Energi, owned by Italian major Eni and Norwegian investor HitecVision, initiated a study by Gassco for a new liquefied natural gas facility or export pipeline to exploit Barents Sea gas resources.

Vaar is looking at the possible development of a smaller LNG plant to handle associated gas from the Goliat oilfield — believed to hold at least 8 billion cubic metres of gas — as well as the Alke discovery in the Barents Sea.

If plans prove economically viable, a new plant would be located near Hammerfest, not far from Norway's only existing LNG facility — Melkoya, which serves Equinor's Snohvit field.

This facility is expected to remain at full capacity producing Snohvit gas for the next two decades.

“We are currently awaiting Gassco’s study on potential gas export solutions,” says a Vaar Energi spokesman, adding that both a small LNG plant, a new LNG train at the Snohvit LNG facility and an export pipeline are options on the table.

“It is still too soon to conclude which, if any, of these alternatives are commercially viable,” he says.

Equinor is also studying options for further development of Snohvit.

Earlier this year, the Snohvit partners decided there are currently not commercial grounds to increase capacity at Melkoya.

As a result, development of the two minor satellite gas discoveries Tornerose and Snohvit Beta has been shelved indefinitely as the group does not expect the facility to have spare capacity until after 2038.

An Equinor spokesman says there are currently insufficient proven resources for a second train at Melkoya, but the company is concerned with proving additional resources in the area.

Equinor is set to make a concept selection later this year on the next stage of its Snohvit Future project to boost recovery of gas resources, with a final investment decision scheduled for next year.

The state-controlled operator is looking at several “building blocks” for phase two of the scheme, including drilling of new wells, onshore and offshore compression to lift reservoir pressure, and possibly a new gas pipeline to the onshore LNG plant, having found at least one viable option earlier this year.

Studies are now being carried out to determine the implementation of these measures, with the finalised schedule coinciding with concept selection in December this year, according to a letter from Equinor to the Norwegian Petroleum Directorate.

In another potential project for Melkoya, Equinor is studying the possibility of powering the facility with electricity from the grid instead of gas-fired power in an effort to reduce greenhouse gas emissions.

“A project which looks into the potential of full or partial electrification of Melkoya is ongoing. Conclusions from this work will hopefully be available in a year's time,” says the Equinor spokesman.

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Infrastructure needed for further exploration