01 October, 2012

Vopak, Swedegas and the Port of Gothenburg turn their attention to the market: Chance to play a part in the planning of the LNG Terminal in Gothenburg

Planning of the new terminal for liquefied natural gas at the Port of Gothenburg is in full flow. During the summer, Vopak and Swedegas signed an agreement, which has now also been signed by the Port of Gothenburg. The parties are about to turn their attention to the market to investigate the level of interest in liquefied natural gas.

Stricter sulphur emission stipulations mean that ships operating in Swedish waters must change to a more eco-friendly fuel by 2015 at the latest. Likewise, an increasing number of Swedish companies are looking to switch from oil and coal to cleaner alternatives. In both cases, LNG is the form of energy that is in greatest demand.

At present, it is difficult for shipping and industry to source LNG in sufficient quantities. A new investment in an LNG terminal at the Port of Gothenburg could be the solution. A survey is currently being conducted to determine market wishes and requirements.

Behind the initiative are the infrastructure company Swedegas, which owns the Swedish gas grid, the Dutch company Vopak LNG, a specialist in the storage of LNG and a subsidiary of the world-leading energy product storage concern Royal Vopak, and the Port of Gothenburg, the largest port in the Nordic region.

Environmental benefits appeal to the market
"The environmental benefits of LNG have generated demand not only in shipping but also in industry. At present, we are scanning the market to ensure we dimension the terminal properly and offer the right services," explains Lars Gustafsson, President of Swedegas.

The terminal is due to be completed in 2015 to satisfy the need in the shipping sector for a maritime fuel with no sulphur or particle emissions. In industry, there is growing realisation of the potential to achieve environmental objectives more rapidly by replacing oil and coal with natural gas. Carbon dioxide emissions would be reduced by 25-40 per cent and emissions of sulphur and particles would be reduced to zero.

First terminal with free competition
The LNG Terminal in Gothenburg will be the first in the country to be built according to the 'open access' principle. Any company interested in supplying gas to the market will now have the opportunity to reserve capacity.

"Free competition is crucial if the end-customer is to be able purchase gas at the best price on the world market," states Lars Gustafsson.

Strategic location
Locating the terminal in Gothenburg is a strategic decision:

"The Port of Gothenburg is not only the largest port in the Nordic region but also the foremost energy port. We want to put across a clear message to the shipping industry that LNG will be available when stricter environmental stipulations come into force," says Magnus Kårestedt, Port of Gothenburg Chief Executive.

The Port of Gothenburg will be among the first of the major ports in the world where vessels that need to bunker will not need to enter a special terminal. Bunkering can take place exactly as it does at present – directly from a bunker tanker while the vessel is being loaded and unloaded. This will open up the potential for large-scale LNG bunkering.

 

Gothenburg is a hub for onward transport of LNG by rail or road to various parts of the country. The terminal can also be connected to the gas grid.

For further information, please contact

Saila Horttanainen, Corporate Communications Manager, Swedegas AB, +46 (0)70-622 76 06

Cecilia Carlsson, Corporate Communications Manager, Port of Gothenburg, +46 (0)31-731 22 45

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