Norway's parliament faces a $45 billion bill and warnings of shattered investor trust from the nation's largest energy firms over a vote to reallocate power from the Melkøya gas plant. Vår Energi, Petoro, and Harbour Energy have united behind operator Equinor in urging the Storting to reverse course, arguing that retroactively changing the rules for the electrified Hammerfest facility threatens Norway’s core economic advantage.
Last week, a parliamentary majority formed behind the Red Party's proposal to free up electricity currently reserved for the Melkøya LNG facility and divert it to other industries. The move directly challenges a 2023 government permit that granted the plant access to grid power for its electrification, a project touted as crucial for cutting Norway's single largest source of industrial CO2 emissions.
Industry Chiefs Voice Unprecedented Concern
Driftssjef Torger Rød of Vår Energi, which holds a 12 percent stake in Melkøya, stated the situation is a direct concern. "We are worried when the rules of the game are changed mid-process," Rød said. He warned against altering the industry's framework conditions negatively and with retroactive effect. "That one begins to sow doubt around decisions and concessions that have been given, and does not ensure predictability around given decisions, that is worrisome. We expect common sense to prevail, and that one does not alter given concessions for Melkøya."
The state-owned company Petoro, which holds a 30 percent stake, is led by CEO Kristin Kragseth. She emphasized that the electrification project had broad agreement. "Everyone agreed that this was a very good project, both business-wise and not least to get rid of one of the biggest emission points in the country," Kragseth said. "I become concerned when the rules are changed mid-game." She dismissed simpler alternatives to meet the plant's power needs, such as building a new gas-fired power station with carbon capture, labelling them ineffective "power point solutions."
The Staggering Cost of a Policy Reversal
Equinor has previously quantified the potential costs of a policy shift. The company stated that fitting the existing gas turbine with carbon capture and storage would cost 37 billion kroner. Constructing a brand new gas power plant with cleansing technology would carry a price tag of 40 to 45 billion kroner. Kragseth argued the time for such discussions has long passed. "If one were to do something different, one should have talked about this many, many years ago," she said.
The international partner Harbour Energy, with a 2.81 percent stake, framed the issue as one of competitive advantage. "One of Norway's biggest competitive advantages is stable framework conditions," said Harbour Energy CEO Michael Zechner. He believes this is weakened by the current Melkøya discussion. "When we commit to long-term investments we must be able to rely on the trust being mutual and the frameworks being fixed." Zechner pointed to Harbour's activities on the British continental shelf, where political instability has previously impacted investment, drawing an implicit contrast with Norway's historically predictable environment.
A Test of Parliamentary Resolve
The parliamentary majority supporting the reallocation of Melkøya's power represents a significant political challenge to both the government and the industrial consensus. The move places immediate climate goals—reducing emissions at the Hammerfest plant—against longer-term industrial and energy policy focused on green transition and electrification of the continental shelf. The companies' unified front highlights a rare alignment between state-owned, privately-owned Norwegian, and international interests, all citing the same principle of predictability.
This dispute transcends a single power allocation decision. It touches on the fundamental contract between the state and the capital-intensive industries that underpin the Norwegian economy. The 2023 approval for electrification was seen as a landmark decision, enabling a major emission cut while utilizing Norway's renewable hydropower. Revoking its central premise retroactively is viewed by the companies not as a policy adjustment, but as a breach of trust that recalibrates risk for all future projects on the Norwegian shelf.