Small-scale liquified natural gas player Avenir LNG has teamed up with Oxelösunds Hamn to develop and build an LNG and Bio-LNG terminal in the Swedish Port of Oxelösund in the Baltic Sea. As part of the memorandum of understanding signed between the two companies, the London-headquartered Avenir plans to buy Oxgas, the dedicated project company for the terminal, which is currently owned by Oxelösunds Hamn.Â
Avenir said Oxgas has all the permits required to build the terminal in the port, allowing Avenir to commence construction at a shorter lead time.
The 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 plan is to supply the terminal utilising Avenir’s fleet of LNG carriers and to consolidate some of Oxgas’ key bunkering customers in the region to be serviced from the terminal.
The companies have also agreed to evaluate the development of a future energy hub for the transition from LNG and Bio-LNG to renewable energy sources. Avenir said it would work with the port to evaluate a cost competitive and energy efficient terminal with the aim of implementing CO2 reduction schemes and bridging the development towards a fully renewable net zero energy facility.
Commenting on the deal, Peter Mackey, CEO of Avenir LNG, said: “This project offers a key strategic growth opportunity for Avenir and advances our stated strategy of becoming the leading small scale LNG supplier. The challenges facing the European gas markets have re-enforced 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.”
