Northern Lights Phase 2 FID Expands CO2 Transport and Storage Chain

Northern Lights Phase 2 FID: What It Means for the CCS Value Chain

In March 2025, Equinor, Shell, and TotalEnergies announced a final investment decision (FID) for phase two of the Northern Lights carbon capture and storage (CCS) project. The expansion will increase total injection capacity from 1.5 million tonnes of CO2 per year (Mtpa) to at least 5 Mtpa, with readiness targeted for the second half of 2028. This decision follows a commercial agreement with Stockholm Exergi to transport and store up to 900,000 tonnes of biogenic CO2 annually for 15 years.

For EPC engineers, procurement managers, and inspectors, this expansion signals a growing demand for CO2-compatible piping materials, fittings, and flanges. However, the announcement provides limited technical details, so buyers must carefully verify material requirements and design conditions before specifying components.

Expansion Scope and Infrastructure Additions

According to the official press release, phase two builds on existing onshore and offshore infrastructure. The expansion includes:

• Additional onshore storage tanks
• A new jetty
• Additional injection wells

Equinor remains the technical service provider (TSP) for phase two, responsible for development, construction, and operation on behalf of the partnership. The investment is NOK 7.5 billion, including €131 million (approximately NOK 1.5 billion) from the Connecting Europe Facility (CEF) funding scheme.

Phase one operations began in August 2025, with the first CO2 volumes injected and stored. The receiving terminal is located at Øygarden, near Bergen, and CO2 is transported via pipeline to a reservoir 2,500–2,600 meters below the seabed in the North Sea.

Procurement Implications for CO2 Piping Systems

For suppliers of anti-corrosion and insulation fittings and seamless steel pipes, the Northern Lights expansion represents a significant opportunity. However, CO2 service imposes unique demands on materials and components.

Key considerations for procurement:

• CO2 composition and water content: The corrosivity of CO2 depends heavily on the presence of water and impurities. Buyers must obtain the exact fluid composition, including water content, from the operator or engineering contractor.
• Pressure and temperature: Injection pressures and temperatures affect material selection and wall thickness calculations. These parameters are not disclosed in the public announcement and must be verified.
• Material selection: Carbon steel may be suitable for dry CO2, but if water is present, corrosion-resistant alloys or coatings may be required. Stainless steel or duplex materials might be specified for certain sections.
• Standards and codes: Piping design should follow applicable codes such as ASME B31.3 or B31.12 for hydrogen piping and pipelines, but CO2-specific guidelines may also apply. Buyers should confirm which code is referenced in the project specifications.

RFQ Inputs for CO2 Service Components

When preparing RFQs for piping components for CCS projects, include the following:

• Fluid composition: CO2 purity, water content, and trace components (e.g., H2S, O2, NOx)
• Operating conditions: Pressure, temperature, and flow rates
• Design code and edition: e.g., ASME B31.3, ASME B31.12, or DNV-ST-F101
• Material specification: e.g., ASTM A106 for seamless carbon steel pipe, ASTM A333 for low-temperature service, or ASTM A312 for stainless steel
• Corrosion allowance: As specified by the design engineer
• Coating and insulation requirements: For anti-corrosion and insulation fittings, specify the coating type and thickness, and insulation material and density
• Testing and inspection requirements: NDT methods, hydrostatic test pressure, and acceptance criteria

Inspection and Documentation Points

For CO2 piping components, inspectors should verify:

• Material traceability: Mill test certificates (MTCs) per EN 10204 3.1 or 3.2, showing chemical composition and mechanical properties
• Dimensional compliance: Check against ASME B16.9 for fittings and ASME B16.5 for flanges
• Surface condition: No cracks, pits, or other defects that could initiate corrosion
• Coating integrity: For anti-corrosion fittings, verify coating thickness and adhesion
• Welding quality: If field welding is required, ensure WPS/PQR are qualified for the material and service

Common Risks and Mitigation

• Incomplete material data: Without full fluid composition, specifying the wrong material can lead to corrosion failures. Mitigation: Request a material selection report from the project team.
• Underestimating low-temperature effects: CO2 can cause brittle fracture if temperatures drop below design limits. Mitigation: Specify low-temperature materials like ASTM A333 or impact-tested fittings.
• Ignoring hydrate formation: Water and CO2 can form hydrates, leading to blockages. Mitigation: Ensure dehydration systems are in place and specify materials resistant to hydrate inhibitors.
• Assuming standard carbon steel is sufficient: Even dry CO2 can cause stress corrosion cracking in high-pressure applications. Mitigation: Follow NACE MR0175/ISO 15156 if sour service is possible.

Conclusion

The Northern Lights phase 2 FID is a clear signal that large-scale CCS is moving forward. For suppliers and buyers of piping components, this means new opportunities but also new technical challenges. By verifying all design conditions and specifying materials correctly, you can ensure safe and reliable operation in CO2 service.

Sources

• https://www.equinor.com/news/20250327-northern-lights-phase-2
• https://www.equinor.com/energy/northern-lights