The company said the decision was taken “following several years of unprofitable operations”.
“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,” said Grete Haaland, senior vice-president for asset management in the Marketing, Midstream and Processing department.
The gas-fired CHP plant (pictured) supplies the refinery with 280 MWe and 350 MWth. It came online in 2010 with the goal of improving energy efficiency at Mongstad and supplying energy to industrial and other customers in the region.
Statoil said the plant will operate at full power until its existing gas supply agreement ends in December 2018.
“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 said.
The Mongstad production facility includes an oil refinery, a LNG processing plant, a crude oil terminal and Technology Centre Mongstad, a research facility for developing and testing CO2 capture from flue gases.