A terminal for liquefied natural gas, LNG, could be completed in Gothenburg, the largest port in Nordic region, as early as 2015. This is the aim of a letter of intent, signed by the Gothenburg-based Swedegas and the Dutch company Royal Vopak. The terminal can supply LNG to both shipping and industry and will be open to all parties interested in the Swedish market.
Royal Vopak, a specialist in the storage of liquefied natural gas and other energy products, and the infrastructure company Swedegas, which owns and operates the gas grid in south-west Sweden, have today announced that they will start a feasibility study for a LNG terminal. The Port of Gothenburg supports the initiative.
Magnus Kårestedt, Port of Gothenburg Chief Executive, says: "We welcome this initiative. Royal Vopak and Swedegas offer a strategic alliance with a strong combination of international experience and local market knowledge. The Port of Gothenburg has worked for a long time to be able to offer the shipping industry LNG 2015 by latest”.
LNG is natural gas that is cooled down to liquid form and is thus reduced in volume 600 times. By using LNG emission of sulphur and particles, which are the greatest problems in the shipping industry, will be eliminated completely. Nitric oxide and carbon dioxide emissions will also be reduced substantially.
LNG can be transported by sea, rail and road and it can reach parts of the country that at present have no gas infrastructure. Therefore, an LNG terminal in Gothenburg would be of major strategic value, not only for shipping and the West Coast but also for industry in other parts of the country.
The planned terminal capacity is 20,000 cubic metres, with possible further expansion according to market demand. Natural gas will be brought to the terminal by sea using special LNG vessels. The terminal will be open to all companies that are interested in supplying the Swedish gas market. The feasibility study, as agreed in the Letter of Intent, will include technical and financial parameters and is expected to be completed by the end of this year.
The Port of Gothenburg will be among the first major ports in the world where vessels will be able to refuel or bunker with LNG without having to enter a special terminal. As is the case today, bunkering will take place from a bunker vessel while the vessel is being loaded or unloaded.