Finance
Norway parliament rejects challenge to LNG plant's power supply
Published by Global Banking & Finance Review®
Posted on February 5, 2026
2 min readLast updated: February 5, 2026
Quick Summary
Norway's parliament approved Equinor's plan to power the Hammerfest LNG plant, despite opposition citing potential local electricity shortages and price hikes.
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)
Key Takeaways
- •Norway's parliament approved Equinor's LNG plant power supply plan.
- •The Socialist Party withdrew support, leading to the proposal's rejection.
- •The government aims to reduce emissions and extend the plant's life.
- •Critics fear local electricity shortages and higher prices.
- •The plant is crucial for Norway's gas exports, supplying 5%.
Frequently Asked Questions about Norway parliament rejects challenge to LNG plant's power supply
1What is liquefied natural gas (LNG)?
Liquefied natural gas (LNG) is natural gas that has been cooled to a liquid state for ease of storage and transport. It is primarily composed of methane and is used as a fuel source.
2What is greenhouse gas emissions?
Greenhouse gas emissions refer to gases that trap heat in the atmosphere, contributing to climate change. Common greenhouse gases include carbon dioxide, methane, and nitrous oxide.
3What is the role of a power grid?
A power grid is a network that delivers electricity from producers to consumers. It includes power plants, transmission lines, and distribution systems, ensuring reliable energy supply.
4What are indigenous rights?
Indigenous rights are the rights of indigenous peoples to maintain their cultural identity, land, and resources. These rights are often recognized in international law and treaties.
5What is energy sustainability?
Energy sustainability refers to the ability to meet current energy needs without compromising the ability of future generations to meet theirs. It emphasizes renewable energy sources and efficient usage.
