Norway CO2 emissions up as StatoilHydro flares gas

OSLO, May 13 (Reuters) - Norway's emissions of greenhouse gases rose almost 3 percent in 2007 to a record high, boosted by the opening of a liquefied natural gas plant by state-controlled StatoilHydro (STL.OL: Quote, Profile, Research), Statistics Norway said on Tuesday.

Emissions by the world's number five oil exporter climbed to the equivalent of 55.0 million tonnes of carbon dioxide in 2007 from 53.5 million in 2006 and were 11 percent above 1990 levels, the benchmark for the U.N.'s Kyoto Protocol on global warming.

"Following two years of decrease, emissions of greenhouse gases increased by almost 3 percent in 2007. Norwegian emissions have never been higher," Statistics Norway said in a statement. The previous record was 54.8 million in 2004.

Flaring of natural gas by StatoilHydro at a liquefied natural gas (LNG) plant at Melkoya in Arctic Norway, part of the Snoehvit field development that opened in late 2007, was the main contributor.

"Slightly more than 1.6 million tonnes carbon dioxide were emitted from Melkoya in 2007, of which the main part was due to flaring due to production difficulties," it said.

"The emissions are expected to be about 1 million tonnes carbon dioxide when the production runs as planned," it added.

"Emissions from other parts of the petroleum industry continued to decrease in 2007 due to lower production of crude oil," it said.

Under Kyoto, Norway has said that it will cut emissions by 9 percent below 1990 levels on average during the five-year period 2008-12, unilaterally sharpening an original Kyoto goal of no more than a one percent rise.

Tuesday's figures indicate Norway will have to rely heavily on buying emissions quotas abroad, for instance by investing in clean energy projects in developing nations, to meet its Kyoto target.