Norwegian energy major Equinor has awarded Tenaris a deal for the supply of tubulars for the Northern Lights carbon capture and storage facilities off Norway.
Tenaris said on Wednesday that it would produce 105 kilometres 12” carbon-manganese (C-Mn) seamless line pipe from its Dalmine mill in Italy.
Gregoire Flipo, Tenaris line pipe and process commercial VP, said: “For this unique project, we leveraged our extensive track record, our technical capabilities and environmental commitment to support the project with line pipe products, contributing to the development of a value chain for carbon capture and storage.
“Participation in an industry-defining project such as Northern Lights marks an important forward step for Tenaris and its positioning and product development strategy for its energy transition agenda”.
The project will be responsible for developing and operating CO2 transport and storage facilities, open to third parties, as part of Longship, the Norwegian Government’s full-scale carbon capture and storage project. Equinor is responsible for delivering the facilities onshore and offshore as a technical service provider to Northern Lights JV.
Following a vote in parliament, the Norwegian Government announced its funding decision for the Northern Lights CO2 transport and storage project in December 2020.
It will be a first of its kind – an open and available infrastructure enabling transport of CO2 from industrial capture sites to a terminal in Øygarden for intermediate storage before being transported by pipeline for permanent storage in a reservoir 2,600 meters under the seabed.
Earlier this month, the Norwegian Ministry of Petroleum and Energy approved the development plan for the project.
The reservoir is in utilisation permit 001 in the northern part of the North Sea southwest of the Troll field and east of the Oseberg field. The licensee – Equinor – has estimated the total investment under the development plan to close to $700 million, and annual operating costs at around $43.6 million. The approved project can store 1,5 million tonnes of CO2 annually, and a planned operation period of 25 years.
On the same day the Ministry approved Northern Lights, the operator company of the project – Northern Lights JV –– was created. The company is backed by Equinor, Shell, and Total.