Swedish BioLNG terminal

Oxelösunds Hamn AB  has signed a Memorandum of Understanding with Avenir LNG Ltd for the development and construction of an LNG/BioLNG Terminal in the Port of Oxelösund.

“The demand for alternative fuels such as LNG/LBG 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,” said Douglas Heilborn, CEO of Oxelösunds Hamn AB.

Gas supply

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 already secured all environmental and construction permits required to build the LNG/BioLNG terminal in the port, so it represents a unique opportunity for Avenir to commence construction of the terminal at a shorter lead time.

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.

Avenir will operate the full LNG/BioLNG supply chain utilising its 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. They said they will do this by jointly evaluating 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.