Statoil, together with its partners at the Kristin gas export project off Norway, has terminated the venture after judging it uneconomical.
The KGEP project, initiated last year, set out to connect the Kristin field with Polarled– a 480 km subsea gas pipeline facilitating the transport of reserves onshore from Norwegian Sea platforms.
The decision to scrap the project followed increasing investment costs and fears over resource availability, the company said in a statement.
The termination would not affect the development of the Polarled project, it added.
“It is a necessary decision that has been taken by the KGEP partners. With the deteriorating project economics, we did not see grounds to continue the KGEP development,” said Polarled development project director Håkon Ivarjord.
Statoil held a 53.4% interest in KGEP; Petoro owned 35.6% and GdFS the remaining 11%.