Norway OKs controversial Arctic natural gas project

by The Associated Press

Norway’s parliament approved the nation’s first petroleum development in the Arctic Barents Sea March 7, despite fierce protests from environmental groups.

The Snoehvit natural gas project had the backing of the Labor Party, the Conservatives, the Christian Democrats and the Party of Progress, with a total of 128 seats in the 165-member parliament.

Snoehvit will provide liquefied natural gas for U.S. and European markets. It’s the biggest development project ever proposed for Norway’s far north and the first in the waters of the Barents Sea.

The nearly $4.5 billion project would provide badly needed jobs in Finnmark, Norway’s northernmost province.

“This is a big day for northern Norway,” said Arvid Jensen of the Finnmark Business Forum.

Elin Lerum Boasson, leader of the Nature and Youth group, had the opposite view and promised to use every legal appeal available to block the project. The project calls for the development of the Snoehvit natural gas field, about 80 miles west of Hammerfest, Norway’s northernmost town, by the end of 2006.

The project includes gas liquefication and power plants. The facilities would process as much as 200 billion cubic feet of natural gas per year.