Norway's parliament on Thursday rejected a proposal to block Equinor's plan to supply electricity to its Hammerfest liquefied natural gas plant from the region's power grid, allowing the ongoing development to continue. Opposition parties had sought to revoke the LNG plant's planned link to the power grid, but the motion failed when the Socialist Party withdrew its support for the plan, calling it "in practice unlawful".
A total of 48 members of parliament backed the opposition's proposal while 54 voted against. Equinor CEO Anders Opedal stated that being able to trust the authorities' decisions is crucial for long-term investments, and any intervention would be destructive of such trust.
The government approved the connection in 2023 to cut greenhouse gas emissions at the plant on Melkoeya island off Hammerfest and extend its lifetime. Critics argue that hooking up the currently gas-driven plant to the regional grid could deprive other companies of electricity, push up local prices and harm the interests of Sami Indigenous reindeer herders.
The far-left Red Party had tabled a motion to kill the plan, seeking to instruct the minority Labour government to facilitate the release of the power allocated to the electrification project on Melkoeya by grid operator Statnett. Several political parties supported the Red Party's proposal.
The LNG plant is owned by Equinor, Petoro, TotalEnergies, Vaar Energi and Harbour Energy and accounts for 5% of Norway's gas exports.
This outcome reflects a cautious approach to long-term investments in renewable energy projects, acknowledging the need for trust between industry stakeholders and regulatory bodies. As the world transitions towards cleaner energy sources, such decisions will become increasingly important in balancing economic interests with environmental concerns.
