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Statoil with gas power plant plans

Statoil is planning to invest in a gas plant at Mongstad in Hordaland and a gas power plant at Tjeldbergodden in Møre og Romsdal.

The plans include an expansion of the methanol plant at Tjeldbergodden and delivery of power from land at Mongstad to the Troll A platform.

The collected investment value is about NOK 8.5 billion (USD 1.25 billion). Statoil’s share will apparently amount to NOK 4 billion (USD 588 million), according to a press release.

Appling today
According to the press release, Statoil is sending a licence application for a gas plant at Tjeldbergodden and report regarding the project Energiverk Mongstad to the Norwegian Water Resources and Energy Directorate (NVE).

With Statoil's new plans the carbon dioxide emissions increase dramatically. The company has not made any plans for how to handle the increased emissions.

The company is sending application to the Norwegian Pollution Control Authority (SFT) regarding emission approvals for the expanded methanol plant and utility plant at Tjeldbergodden.

In a press release from Einar Strømvåg, acting CEO, he states:

«We are presenting a suggestion for future-oriented and pioneering projects which secures long term, profitable development and employment at important industrial locations. Norway has today a shortage of power. By producing electricity from Norwegian natural gas, we reduce the need to import power from more polluting sources.»

Strømvåg stressed that the plans are necessary to strengthen and expand the two plants in order to meet the increased international competition.

Elsam A/S
Statoil has recently entered into a contract with Elsam A/S, one of Denmark’s leading producers of electricity and heat. The plan is that the Danish company enter as the owner of the plant at Mongstad and is responsible for the building of it. The ownership shares are divided at a later time.

The decision regarding the investment in the two projects will be reached by Statoil’s board of directors after the final licence requirements and other demands are established, expected during the first quarter of 2006.

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