Norway parliament rejects challenge to LNG plant's power supply

Norway's Parliament Rejects Opposition to LNG Plant's Power Supply

Norway's LNG Plant Power Supply Decision

OSLO, Feb 5 (Reuters) - Norway's parliament on Thursday rejected a proposal to block Equinor's plan to supply electricity to its Hammerfest liquefied natural gas (LNG) plant from the region's power grid, allowing the ongoing development to continue.

Opposition Proposal and Vote Outcome

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".

Government's Rationale for Approval

A total of 48 members of parliament backed the opposition's proposal while 54 voted against.

Concerns from Critics and Stakeholders

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 say 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, including the right-wing Progress and the agrarian Centre Party supported the Red Party's proposal.

Equinor CEO Anders Opedal on Wednesday warned that passing the motion could have wide repercussions by undermining confidence in Norwegian investment decisions and the country's supply of energy to Europe.

The plant is owned by Equinor, Petoro, TotalEnergies, Vaar Energi and Harbour Energy and accounts for 5% of Norway's gas exports.

(Reporting by Nora Buli, editing by Terje Solsvik)