Released February 25, 2020 | GALWAY, IRELAND
en
Written by Martin Lynch, European News Editor for Industrial Info (Galway, Ireland)--Leading European oil and gas companies Lundin Petroleum AB and Equinor (NYSE:EQNR) have made major pledges to decarbonising their oil and gas operations by 2030.
Both companies have announced a commitment of achieving carbon neutrality across their global operations within a decade. Lundin Petroleum will also change its name to Lundin Energy from March to reflect its decarbonisation goal. Lundin's roadmap includes the following:
Norwegian oil and gas major Equinor plans to grow its renewable energy capacity tenfold to between 4 gigawatts (GW) and 6 GW by 2026, to become a global offshore wind major. It also wants to reduce the net carbon intensity, from initial production to final consumption, of energy produced by at least 50% by 2050. In January, Equinor announced plans to reduce absolute greenhouse gas emissions from its operated offshore fields and onshore plants in Norway by 40% by 2030, 70% by 2040 and toward near-zero by 2050. It wants to reduce the CO2 intensity of its globally operated oil and gas production to below 8 kilograms per boe by 2025, five years earlier than its previous plan. The current global industry average is 18 kg CO2 per barrel according to the International Association of Oil & Gas Producers.
"Today we are setting new short-, mid- and long-term ambitions to reduce our own greenhouse gas emissions and to shape our portfolio in line with the Paris Agreement, said Eldar Sætre, president and chief executive officer of Equinor. "It is a good business strategy to ensure competitiveness and drive change towards a low-carbon future, based on a strong commitment to value creation for our shareholders. We are now looking 30 years into the future, and it is not possible to predict an exact shape and pace of the transition. Not for society and not for us. But we know there will have to be significant changes in the energy markets, and our portfolio will change accordingly to remain competitive. We will produce less oil in a low carbon future, but value creation from oil and gas will still be high, and renewables give significant new opportunities to create attractive returns and growth."
Last October, Industrial Info reported that Equinor had kicked off production at the third-largest oil field in Norway's history, Johan Sverdrup, two months early and $4.4 billion under the original budget. Johan Sverdrup is the biggest field development on the Norwegian continental shelf since the 1980s, with Industrial Info tracking all of the key projects in phases 1 and 2. It has cost $9.1 billion to develop and has expected recoverable reserves of 2.7 billion barrels of oil equivalent, and the full field can produce up to 660,000 barrels of oil equivalent per day at peak. For additional information, see October 21, 2019, article - Norway's Largest New Oil Field Starts Production.
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, six offices in North America and 12 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Our European headquarters are located in Galway, Ireland. Follow IIR Europe on: Facebook - Twitter - LinkedIn For more information on our European coverage send inquiries to info@industrialinfo.eu or visit us online at Industrial Info Europe.
Project(s): 300262301 300262303 300309570 300333803 Plant(s): 3240561
Both companies have announced a commitment of achieving carbon neutrality across their global operations within a decade. Lundin Petroleum will also change its name to Lundin Energy from March to reflect its decarbonisation goal. Lundin's roadmap includes the following:
- From 2020, limit average operated and non-operated portfolio carbon intensity to below 4 kiloograms (kg) of CO2 per barrel of oil equivalent (boe) and from 2023 to below 2 kg CO2 per boe
- In 2022, fully electrify Edvard Grieg and Johan Sverdrup Phase 2, to achieve carbon intensity for these assets of less than 1 kg CO2 per boe
- From 2022, replace all net electricity usage from power from shore, through investments in renewable power generation
- To offset all business and operationally related air travel emissions through natural carbon capture, effective from 2018
- By 2030, achieve carbon neutrality across operations as an oil and gas producer
Norwegian oil and gas major Equinor plans to grow its renewable energy capacity tenfold to between 4 gigawatts (GW) and 6 GW by 2026, to become a global offshore wind major. It also wants to reduce the net carbon intensity, from initial production to final consumption, of energy produced by at least 50% by 2050. In January, Equinor announced plans to reduce absolute greenhouse gas emissions from its operated offshore fields and onshore plants in Norway by 40% by 2030, 70% by 2040 and toward near-zero by 2050. It wants to reduce the CO2 intensity of its globally operated oil and gas production to below 8 kilograms per boe by 2025, five years earlier than its previous plan. The current global industry average is 18 kg CO2 per barrel according to the International Association of Oil & Gas Producers.
"Today we are setting new short-, mid- and long-term ambitions to reduce our own greenhouse gas emissions and to shape our portfolio in line with the Paris Agreement, said Eldar Sætre, president and chief executive officer of Equinor. "It is a good business strategy to ensure competitiveness and drive change towards a low-carbon future, based on a strong commitment to value creation for our shareholders. We are now looking 30 years into the future, and it is not possible to predict an exact shape and pace of the transition. Not for society and not for us. But we know there will have to be significant changes in the energy markets, and our portfolio will change accordingly to remain competitive. We will produce less oil in a low carbon future, but value creation from oil and gas will still be high, and renewables give significant new opportunities to create attractive returns and growth."
Last October, Industrial Info reported that Equinor had kicked off production at the third-largest oil field in Norway's history, Johan Sverdrup, two months early and $4.4 billion under the original budget. Johan Sverdrup is the biggest field development on the Norwegian continental shelf since the 1980s, with Industrial Info tracking all of the key projects in phases 1 and 2. It has cost $9.1 billion to develop and has expected recoverable reserves of 2.7 billion barrels of oil equivalent, and the full field can produce up to 660,000 barrels of oil equivalent per day at peak. For additional information, see October 21, 2019, article - Norway's Largest New Oil Field Starts Production.
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, six offices in North America and 12 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Our European headquarters are located in Galway, Ireland. Follow IIR Europe on: Facebook - Twitter - LinkedIn For more information on our European coverage send inquiries to info@industrialinfo.eu or visit us online at Industrial Info Europe.
Project(s): 300262301 300262303 300309570 300333803 Plant(s): 3240561
