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The rural district of Hammerfest was separated from the city on 1 January 1852, but it was merged back into the city on 1 January 1992. The construction of the large liquefied natural gas site on Melkøya just off Hammerfest, which will process natural gas from Snøhvit, is the most expensive construction project in the history of North Norway.
This project has resulted in an economic boom and new optimism in Hammerfest in recent years, a stark contrast to the economic downhill and negative population growth most other municipalities in Finnmark are experiencing.After the opening of natural gas production on Melkøya there have been some problems with significant smoke and soot pollution in the initial production phases. Snøhvit is Europe's first export facility for liquefied natural gas.
Hammerfest offers sport and commercial fishing, both sea and freshwater, as well as scuba diving. The northernmost glacier on the Norwegian mainland is a popular hiking destination. The town is a popular starting point for northern tours. There is a daily boat to the North Cape One chain of the Struve Geodetic Arc, now on the World Heritage List, is located at Fuglenes in Hammerfest.
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