Danish power cables supplier NKT has signed a contract, worth around DKK820m (€110m), with Equinor Energy to deliver a 2x200km long cable system for the latter’s Johan Sverdrup phase 2 project offshore Norway.
The cable system to be supplied for the Johan Sverdrup phase 2 project will comprise 80 kV high-voltage DC offshore power cables. NKT expects to begin production of the cables at end-2019 with delivery slated to be made in 2021.
The signing of the contract follows a letter of award issued to the Danish firm earlier this month.
The turnkey HVDC power cable solution to be supplied by NKT for the Johan Sverdrup phase 2 project will supply electricity from the Norwegian power grid to the oil field located in the North Sea.
According to the Danish company, the power from shore to the oil platform is an environmentally sustainable solution, which would significantly reduce emissions of CO2 from oil and gas production.
Previously, NKT was associated with the $10.32bn Johan Sverdrup phase 1 project for which it had supplied and installed a high-voltage DC offshore power cable solution through its cable-laying vessel NKT Victoria.
Very recently, Equinor and its partners inaugurated the power-from-shore solution which has been designed to provide electricity to the Johan Sverdrup project for more than 50 years.
The onshore power solution will have 100MW capacity to enable production of up to 440,000 barrels per day for Johan Sverdrup development phase 1. The Johan Sverdrup phase 2 project, on the other hand, will see power from shore capacity increased to 300MW.
The additional 200MW capacity is anticipated to allow the Johan Sverdrup project make sure that electricity supplied from shore covers the Edvard Grieg, Gina Krog and Ivar Aasen fields in the Utsira High.
Having sanctioned the Johan Sverdrup phase 2 project in March 2017, Equinor and its partners awarded FEED contracts to Aker Solutions, Kværner and Siemens. The phase 2 development of the Johan Sverdrup is slated to enter into production in 2022.
The Johan Sverdrup phase 2 project will also include development of the Avaldsnes (east), Kvitsøy (south) and Geitungen (north) satellite areas.