Avenir pens MoU for Swedish LNG terminal
Small-scale LNG developer Avenir LNG has agreed preliminary terms on building an LNG terminal in the Swedish port of Oxelosund. The MoU was signed with the port's operator Oxelosunds Hamn, Avenir LNG said August 11.
Under the agreement, Avenir will buy the terminal's operating company OXGAS AB, which is currently wholly owned by Oxelosunds Hamn. OXGAS would import LNG and bio-LNG using Avenir's existing carrier fleet, dispatching regasified fuel into a local Swedish distribution grid. Some LNG quantities could also be re-exported via two truck loading bays at the port for redistribution to other port facilities.
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Oxgas installed a temporary LNG regasification terminal in Oxelosund in April 2020, comprising a 500-m3 container. The company has previously said that the permanent terminal would have a capacity of 32,900 m3.
Oxgas hopes to leverage the strengths of its existing infrastructure at the port, and will also push the new facility's biogas compatibility with green methane sources, furthering Sweden's energy transition objectives. In addition, the facility will offer bunkering to LNG-fuelled ships in the area.
Avenir LNG has a pedigree in small-scale European LNG terminal construction. It already operates a two-loading bay LNG import and regasification facility on the Italian island of Sardinia, described as the Mediterranean's "first dedicated small scale" LNG depot.
Under agreement's terms, Avenir will oversee the full LNG and bio-LNG supply chain for the terminal. The company also expects the deal to "consolidate" LNG supply routes to its existing bunkering fuel customers around Sweden, freeing up vessel capacity elsewhere.
Peter Mackey, CEO of Avenir LNG, said Europe's current energy plight had strengthened his company's determination to back key infrastructure spends. He said: "The challenges facing the European Gas markets have reenforced Avenir’s commitment to investing in critical infrastructure and supply chains which enhance energy security in regions of stranded demand and further enable the switching to cleaner, greener and more sustainable forms of energy.”
Douglas Heilborn, CEO of Oxelosunds Hamn, added: "Teaming up with Avenir LNG will allow us to proceed into the next phase with our OXGAS project and we are convinced Avenir is the right partner to work with.
"The demand for alternative fuels such as LNG/bio-LNG will grow in the shipping industry within the Baltic Sea. A key component for sustainable shipping is developed infrastructure for such fuels. Having access to terminals is important as it will create opportunities for new shipping solutions.”