Swedegas and Vopak plan to invest in LNG terminal at the port of Gothenburg
There is considerable interest in liquefied natural gas, LNG, in shipping and Swedish industry. This is revealed in a market screening conducted by Swedegas. New, stricter environmental stipulations for maritime fuel in Swedish waters from 2015, coupled with the need in industry to switch from oil, are the main reasons for changing to liquefied natural gas, LNG, said in a press release.
The Swedish infrastructure company Swedegas recently conducted a survey to find out how much interest there is in LNG. The results of the survey provide important documentation in the lead-up to the establishment of an LNG terminal at the Port of Gothenburg. About 20 major shipping, industrial and gas trading companies responded.
"The response was highly encouraging. The replies clearly show that LNG is a fuel of the future and that companies are prepared to invest in line with the introduction of LNG onto the Swedish market," says Lars Gustafsson, President of Swedegas.
Swedegas and the Dutch company Vopak are planning a major investment in an LNG terminal at the largest port in the Nordic region. The Port of Gothenburg is supporting the project and investing in the port area. By offering open access to the terminal for any company seeking to import LNG into Sweden, the market will for the very first time be completely free to choose LNG supplier.
"There is potential in Swedish industry to replace over 10 TWh of oil with natural gas. With an LNG terminal in Gothenburg, we could satisfy around half of the entire needs of industry. There are substantial environmental benefits in the form of almost complete elimination of sulphur emissions from shipping and a 25 per cent reduction in carbon dioxide emissions by industry, says Lars Gustafsson.
A new report from the engineering consulting company Ramböll also confirms that the largest port in the Nordic region, Gothenburg, would be a natural hub in a national infrastructure solution that could also include other ports. Apart from bunkering ships, LNG can be transported easily from Gothenburg by rail and road to destinations throughout the country. LNG can also be transmitted from the terminal into the gas grid.
Swedegas is an infrastructure company that invests in smart energy systems. The company owns the gas grid, which extends from Dragör in Denmark to Stenungsund in Sweden. Each year, Swedegas transmits energy equivalent to 15 TWh to distributors and directly connected customers. The gas grid supplies natural gas to 33 municipal areas and several combined heat and power plants and companies. Swedegas is currently investing in the development of an infrastructure for biogas and liquefied natural gas (LNG).
The Port of Gothenburg is the largest port in the Nordic region with 11,000 calls by vessels each year. One-third of Swedish international trade passes through the Port of Gothenburg and 60 per cent of all container traffic. Gothenburg has the widest range of shipping services within and outside Europe. It is also the location of the largest energy port in the Nordic region.
LNG is a gas that has been cooled down to liquid form, taking up just 1/600th of the volume in its gaseous state. It can be transported by sea, rail and road, thus reaching parts of the country that lack a gas grid. An LNG terminal in Gothenburg will be of importance not only for the West Coast but also for industry in other parts of the country where Swedish base industry is in the process of replacing oil and coal.
