Avenir LNG signs MoU for the development and construction of an LNG/BioLNG Terminal in the Port of Oxelösund, Sweden
Avenir LNG Limited has signed a Memorandum of Understanding (“MOU”) with Oxelösunds Hamn AB for the development and construction of an LNG/BioLNG Terminal in the Port of Oxelösund, Sweden, according to the company's release.
As part of the agreement, Avenir intends to acquire 100% of the shares in OXGAS AB, the dedicated project company for the Terminal which is currently owned by Oxelösunds Hamn AB. OXGAS AB has secured all environmental and construction permits required to build the LNG/BioLNG Terminal in the Port, and represents a unique opportunity for Avenir to commence construction of the Terminal at a shorter lead time following finalisation of the detailed design and subject to satisfactory due diligence and internal approvals.
The OXGAS Terminal will comprise of a single full-containment atmospheric tank, natural gas delivery via regasification to a local pipeline network and LNG via two truck loading bays for wider distribution beyond the port. The Terminal is adjacent to key industrial consumers and has excellent connectivity to roads and rail which will enable access to existing and new demand centres in Sweden.
Avenir will operate the full LNG/BioLNG supply chain utilizing our fleet of LNG Carriers to supply the terminal. OXGAS will allow Avenir to consolidate some of its key bunkering customers in the region to be serviced from the Terminal which will free up capacity and increase throughput across the fleet.
The companies have also agreed to evaluate the development of a future energy hub for the transition from LNG/BioLNG to renewable energy sources. Avenir together with the Port will jointly evaluate a cost competitive, safe and energy efficient Terminal with the aim of implementing CO2 reduction schemes and bridging the development towards a fully renewable net zero energy facility.
Avenir LNG supplies small-scale LNG to off-grid industry, power generation and marine transport. Avenir LNG is a provider of small-scale LNG solutions; working with partners globally to unlock new markets for natural gas.
Oxelösunds Hamn AB is located on the east coast of Sweden in the Baltic Sea. The port has excellent logistical advantages with deep sea and short entrance fairway, rail and road network. The port handles dry and liquid bulk as well as break bulk, container and RoRo.
