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Equinor (EQNR) Sparks Green Revolution With HLNG Electrification

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Equinor ASA, (EQNR - Free Report) the Norwegian state-owned energy giant, is taking significant steps toward the electrification of Hammerfest LNG (“HLNG”), a crucial component of the Snøhvit Future project.

The Norwegian energy giant recently sealed a call-off option, entering into an agreement with Multiconsult Norge, a subsidiary of Multiconsult, for the engineering of the grid connection to Hammerfest LNG. The Snøhvit Future project, of which HLNG is a vital part, aims to enhance Norway's standing as a reliable supplier with a low greenhouse gas emission footprint.

The call-off option includes management assistance and follow-on engineering during the construction and commissioning phases of the project. The contract's estimated value to Multiconsult is pinned at NOK 190 million ($18 million), with the project set to commence immediately and conclude in 2028.

Multiconsult, having secured the detailed engineering contract for the grid connection, will undertake comprehensive multidisciplinary engineering. This involves designing the grid connection from the substation on Hyggevatn through a tunnel to Meland, as well as subsea cables to Melkøya, where the HLNG facilities are situated.

The Snøhvit Future project includes both land compression and the electrification of HLNG facilities. Leonhard Nilsen & Sønner (“LNS”) has been awarded the $142.8 million contract for this transformative work and installation. As a crucial aspect of the project, the existing gas turbine generators will be replaced by power sourced from shore, resulting in a substantial reduction of 850,000 tons of CO2 emissions annually. This translates to a noteworthy 2% decrease in Norway's annual emissions.

The ambitious project positions Norway at the forefront of sustainable energy practices, in line with the global efforts to combat climate change. Equinor's commitment to electrifying Hammerfest LNG signifies a crucial step toward a greener and more sustainable future for Norway's energy landscape.

Zacks Rank & Key Picks

Equinor currently carries a Zack Rank #4 (Sell).

Some better-ranked stocks in the energy sector are Sunoco LP (SUN - Free Report) , Murphy USA Inc. (MUSA - Free Report) and Energy Transfer LP (ET - Free Report) , each sporting a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

Sunoco is among the biggest motor fuel distributors in the U.S. wholesale market in terms of volumes. By distributing more than 10 fuel brands via 10,000 convenience stores under long-term distribution contracts, the partnership will continue to generate stable cash flow. 

The Zacks Consensus Estimate for SUN’s 2024 EPS is pegged at $4.89. The stock has witnessed upward earnings estimate revisions for 2024 and 2025 in the past 30 days.

Murphy USA is a leading independent retailer of motor fuel and convenience merchandise in the United States.

The Zacks Consensus Estimate for MUSA’s 2024 EPS is pegged at $25.58. The company has a Zacks Style Score of B for Growth and B for Value. It has witnessed upward earnings estimate revisions for 2024 and 2025 in the past 30 days.

Energy Transfer is a publicly traded limited partnership focused on diverse energy assets in the United States. The company’s core operations involve natural gas midstream services, transportation, storage, crude oil facilities and marketing assets.

The Zacks Consensus Estimate for ET’s 2024 EPS is pegged at $1.44. The company has witnessed upward earnings estimate revisions for 2024 in the past 30 days. ET’s 2024 earnings are expected to rise 32.1% year over year.


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