NKT is all set to get a contract of around €110m from Equinor Energy for a 200km long cable system for the Johan Sverdrup phase 2 project offshore Norway.
Under the contract, the Danish power cables supplier will be responsible for supply and installation of 80kV high-voltage DC (HVDC) offshore power cables to be used by the Johan Sverdrup phase 2 project.
As of now, NKT has been issued a letter of award for the project, with the award being conditional on the finalization of the formal contract which is expected to be done shortly.
As per the Danish power cables supplier, the cable system to be supplied by it will be made up of 2x200km of cables with their production expected to begin in end-2019.
The turnkey HVDC power cable solution for the Johan Sverdrup phase 2 project will transmit electricity from the Norwegian power grid to the offshore oil field.
NKT said that electricity from shore to the oil platform is an environmentally sustainable solution, which would considerably bring down emissions of CO2 from oil and gas production.
The Danish power cables supplier has been involved with the $10.32bn Johan Sverdrup phase 1 project as well through the supply and installation of a high-voltage DC offshore power cable solution. The installation was carried out by its cable-laying vessel NKT Victoria.
NKT president and CEO Michael Hedegaard Lyng said: “I see the letter of award as proof of our premium DC technology capabilities and of our ability to provide turnkey solutions with NKT Victoria as a differentiator.
“The letter of award for Johan Sverdrup 2 is further strengthening our leading market position in the oil and gas segment, which along with offshore wind and interconnectors represents good growth opportunities for NKT.
Equinor along with its partners Lundin Norway, Petoro, Aker BP and Total will execute the Johan Sverdrup phase 2 project in the North Sea with an investment of NOK41bn ($4.92bn). The second phase of the Johan Sverdrup development project is slated to enter into production in the fourth quarter of 2022.