Swedegas & Vopak Ink LoI for Sign Swedish LNG Terminal

Swedish Swedegas gas grid operator and Dutch terminal provider Vopak may construct a LNG terminal in Gothenburg, Sweden, following the signing of a Letter of Intent (LoI) for the project.

Swedegas said today that, following the signing, a liquefied natural gas terminal could potentially be built and completed by 2015.

Through the LoI, both companies will discuss the possibility of entering into a joint venture and of investing into the project. The two companies will now undertake a feasibility study into the project, which has the approval of the Port of Gothenburg authorities.

"LNG is extremely interesting for shipping as an eco-friendly fuel," President of Swedegas, Lars Gustafsson said. "Also in industry, where there is a desire for environmental reasons to switch from oil and coal to natural gas, there is a demand for LNG.

"For the first time ever in Sweden, there is now the opportunity for LNG to become part of a more extensive infrastructure by linking the terminal to our gas grid. The infrastructure that is being developed for liquefied natural gas will in the future also work for liquefied biogas."

The planned terminal will be the first of its kind for Sweden should it be constructed, Swedegas said today, with the terminal being open to "all parties". This means, in line with EU regulations, ownership and operation of energy infrastructures will be kept separate from production and sales.

"Our mutual objective is that Sweden has a safe and efficient LNG terminal which is open to all customers and that is fully dedicated to serve the needs of the market," Dirk van Slooten, Global Director of Vopak LNG, said.