Finance
Norway's Socialist Party backs down from threat to LNG electricity project
Published by Global Banking & Finance Review®
Posted on February 4, 2026
2 min readLast updated: February 4, 2026
Global Banking & Finance Review®
Company
Published by Global Banking & Finance Review®
Posted on February 4, 2026
2 min readLast updated: February 4, 2026
Norway's Socialist Party has withdrawn opposition to Equinor's LNG power connection, allowing the project to proceed despite local concerns.
By Nora Buli
OSLO, Feb 4 (Reuters) - Norway's Socialist Party has withdrawn its support for a proposal to block Equinor's Hammerfest liquefied natural gas plant from receiving a planned onshore power connection, clearing the way for the grid development to proceed.
Parliament is due on Thursday to vote on an opposition proposal seeking to revoke the LNG plant's planned link to the power grid, but the motion is likely to fail without backing from the Socialist Party.
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, had signalled they would back the proposal in recent weeks, putting it on course for approval.
The Socialist Party said on Wednesday it remained opposed to the project but was withdrawing its support for the motion because it was "in practice unlawful".
Earlier on Wednesday, Equinor CEO Anders Opedal warned that the motion would have repercussions far beyond Hammerfest.
"This creates uncertainty for everyone who works on and with Melkoeya, but also for everyone who makes investments based on agreements in Norway and for Europe that needs the energy," Opedal said.
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 and Mark Potter)
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 for heating, electricity generation, and as a fuel for vehicles.
Greenhouse gas emissions refer to the release of gases that trap heat in the atmosphere, contributing to global warming. Common greenhouse gases include carbon dioxide, methane, and nitrous oxide.
Equinor is a Norwegian multinational energy company primarily focused on oil and gas production. It plays a significant role in Norway's energy sector, including the development of renewable energy projects.
The Sami Indigenous people are an ethnic group native to the northern parts of Norway, Sweden, Finland, and Russia. Their interests often include land rights, cultural preservation, and sustainable resource management.
Power connections for LNG plants are significant as they allow these facilities to transition from gas-driven operations to more sustainable energy sources, potentially reducing greenhouse gas emissions and extending the plant's operational life.
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