Statoil to Phase Out Mongstad Combined Heat and Power Plant

Statoil, February 15, 2017

The combined heat and power plant (CHP) at Statoil's Mongstad complex is being phased out following several years of unprofitable operations.  The other operations at the complex will continue as before. 

"The reason for this decision is that the CHP has had less utilization than planned due to lower steam demand at Mongstad. This has resulted in severe operating loss and actions to adjust the activity are unavoidable," says Grete Haaland, Senior Vice President for Asset Management in Marketing, Midstream and Processing in Statoil.

The CHP was developed in 2010 to improve the energy efficiency at Mongstad and to secure the energy supply to industrial and others customers in the region and to the continental shelf. Part of the gas being used at the CHP is supplied through at separate agreement with the Troll license. Statoil Refining Norway AS (the Mongstad Refinery) and the partners in the Troll license have agreed to terminate the existing gas agreement with effect as of 31 December 2018.

The CHP will operate as today until the gas supply under the existing agreement Is ended and the normal operation of the power plant ceases.

"The CHP will run as normal until the termination. In this two-year period, alternative sources for steam and solutions for safe and stable operations for the refinery will be worked out," Haaland says.

Statoil will adjust the refinery to the changed conditions for the operation. A consequence of the cessation of the operations of the CHP is a reduction of CO2 emissions in the range of 250 – 300.000 tons per year.

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