The Melkoeya plan: a controversial alternative to reduce carbon emissions

The Norwegian Parliament has voted to evaluate carbon capture and storage as an alternative to electrifying Western Europe's largest LNG facility. The Melkoeya plan is a controversial issue for residents, and the opposition is seeking to capitalize on the low ratings of the center-left minority government in the run-up to the local elections.

Share:

Comprehensive energy news coverage, updated nonstop

Annual subscription

8.25$/month*

*billed annually at 99$/year for the first year then 149,00$/year ​

Unlimited access • Archives included • Professional invoice

OTHER ACCESS OPTIONS

Monthly subscription

Unlimited access • Archives included

5.2$/month*
then 14.90$ per month thereafter

FREE ACCOUNT

3 articles offered per month

FREE

*Prices are excluding VAT, which may vary depending on your location or professional status

Since 2021: 35,000 articles • 150+ analyses per week

The Norwegian parliament recently voted to consider an alternative to reduce carbon emissions at Western Europe’s largest liquefied natural gas (LNG) facility, operated by oil company Equinor and its partners.

The Melkoeya Project: Conflict between green industry, electricity prices and indigenous rights

The site is known to be one of the largest single emitters of carbon dioxide in Norway, so reducing its emissions is a priority for the country.

Parliament has ordered the minority government to evaluate carbon capture and storage(CCS) as an alternative to electrification by 2029. This decision follows a request from Equinor and its partners to replace the use of gas at the site with electricity from the national grid, in order to reduce emissions. However, the company said that CCS would be too expensive. In a unanimous vote, Parliament ordered the government to assess the feasibility of CCS, despite Equinor’s claims.

The Melkoeya plan, as it is called, has been a controversial issue for locals because of its apparent conflict with the development of green industry, rising electricity prices, as well as the rights of indigenous Sami reindeer herders. As the Norwegian local elections approach later this year, the plan has become a major concern for voters in the region. The opposition is seeking to take advantage of the low ratings of the centre-left minority government.

Equinor and partners encouraged to consider CCS to reduce carbon emissions

Equinor’s partners on the site are TotalEnergies, Wintershall Dea, Neptune Energy and the Norwegian state-owned company Petoro. Despite the controversy surrounding the project, the parliament did not stop the electrification of the project. Instead, he recommended that Equinor and its partners consider the use of CCS as a viable alternative for reducing carbon emissions.

The Norwegian parliament has ordered the government to evaluate carbon capture and storage as an alternative to electrification of Western Europe’s largest LNG facility operated by Equinor and its partners, despite cost concerns raised by the company. The Melkoeya plan is a controversial issue for residents, and the opposition is seeking to capitalize on the low ratings of the center-left minority government in the run-up to the local elections.

Japanese power producer JERA will deliver up to 200,000 tonnes of liquefied natural gas annually to Hokkaido Gas starting in 2027 under a newly signed long-term sale agreement.
An agreement announced on December 17, 2025 provides for twenty years of deliveries through 2040. The package amounts to 112 billion new Israeli shekels (Israeli shekels) (NIS), with flows intended to support Egyptian gas supply and Israeli public revenues.
Abu Dhabi’s national oil company has secured a landmark structured financing to accelerate the development of the Hail and Ghasha gas project, while maintaining strategic control over its infrastructure.
U.S.-based Sawgrass LNG & Power celebrates eight consecutive years of LNG exports to The Bahamas, reinforcing its position in regional energy trade.
Kinder Morgan restored the EPNG pipeline capacity at Lordsburg on December 13, ending a constraint that had driven Waha prices negative. The move highlights the Permian’s fragile balance, operating near the limits of its gas evacuation infrastructure.
ENGIE activates key projects in Belgium, including an 875 MW gas-fired plant in Flémalle and a battery storage system in Vilvoorde, to strengthen electricity supply security and grid flexibility.
Hungary has signed a contract with US company Chevron to import 400mn m³ of LNG per year, while maintaining a structural dependence on Russian gas through a long-term agreement with Gazprom.
Chevron Australia awards Subsea7 a major contract for subsea installation on the Gorgon Stage 3 project, with offshore operations scheduled for 2028 at 1,350 metres depth.
Ovintiv has entered into an agreement with Pembina Pipeline Corporation to secure 0.5 million tonnes per annum of LNG liquefaction capacity over 12 years, strengthening its export outlook to Asian markets.
TotalEnergies has completed the sale of a minority stake in a Malaysian offshore gas block to PTTEP, while retaining its operator role and a majority share.
The European Union will apply its methane emissions rules more flexibly to secure liquefied natural gas supplies from 2027.
Venezuela has ended all energy cooperation with Trinidad and Tobago after the seizure of an oil tanker carrying crude by the United States, accusing the archipelago of participating in the military operation in the Caribbean.
National Fuel has secured $350mn in a private placement of common stock with accredited investors to support the acquisition of CenterPoint’s regulated gas business in Ohio.
GTT appoints François Michel as CEO starting January 5, separating governance roles after strong revenue and profit growth in 2024.
The United States is requesting a derogation from EU methane rules, citing the Union’s energy security needs and the technical limits of its liquefied natural gas export model.
Falcon Oil & Gas and its partner Tamboran have completed stimulation of the SS2-1H horizontal well in the Beetaloo Sub-basin, a key step ahead of initial production tests expected in early 2026.
Gasunie Netherlands and Gasunie Germany have selected six industrial suppliers under a European tender to supply pipelines for future natural gas, hydrogen and CO₂ networks.
The ban on Russian liquefied natural gas requires a legal re-evaluation of LNG contracts, where force majeure, change-in-law and logistical restrictions are now major sources of disputes and contractual repricing.
The US House adopts a reform that weakens state veto power over gas pipeline projects by strengthening the federal role of FERC and accelerating environmental permitting.
Morocco plans to commission its first liquefied natural gas terminal in Nador by 2027, built around a floating unit designed to strengthen national import capacity.

All the latest energy news, all the time

Annual subscription

8.25$/month*

*billed annually at 99$/year for the first year then 149,00$/year ​

Unlimited access - Archives included - Pro invoice

Monthly subscription

Unlimited access • Archives included

5.2$/month*
then 14.90$ per month thereafter

*Prices shown are exclusive of VAT, which may vary according to your location or professional status.

Since 2021: 30,000 articles - +150 analyses/week.