StatoilHydro stumbles in sprint for Arctic energy riches

0 Comments | AFP, May, 2008

MELKOEYA, Norway (AFP) — When Norwegian energy giant StatoilHydro fired up the world's northernmost liquefied natural gas plant here last year it was hailed as an industry pioneer.

But turning Arctic gas into gold has proven anything but simple.

"It is true that we've had some problems with the budget, with some of the technology and with CO2 emissions," acknowledged Sverre Kojedal, a spokesman for StatoilHydro's Snoehvit (Snow White) gas field and LNG plant project.

Snoehvit and two satellite gas fields set to feed the brand new LNG plant on the northern Norwegian Melkoeya island, about 2,000 kilometres from the North Pole, are believed to hold about 193 billion cubic metres of recoverable natural gas.

Statoil, which late last year expanded to...