LNG and Oxelösunds Hamn AB have signed a memorandum of understanding (MoU) to construct a liquefied natural gas (LNG) and BioLNG terminal in the Port of Oxelösund, Sweden.
Under the MoU, Avenir plans to buy 100% of the shares in OXGAS AB, a project company for the terminal owned by Oxelösunds Hamn AB.
Furthermore, all the necessary environmental and construction approvals for building the terminal in the port have been granted to OXGAS AB, enabling Avenir to start construction without any delay.
Works will start once the detailed design of the OXGAS Terminal is approved and finalised.
The terminal will feature a full-containment atmospheric tank, delivery of natural gas through regasification to a local pipeline network, and two truck loading bays to facilitate LNG supply beyond the port.
It will be well connected to roads and rail to cater to existing and new demand centres across Sweden.
According to Avenir, the company will run the entire LNG/BioLNG supply chain, using its LNG carriers to supply the terminal.
Avenir will also consolidate OXGAS’s bunkering customers to be serviced from the terminal. This will free up capacity across the fleet.
Avenir LNG CEO Peter Mackey 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.”
Additionally, Avenir LNG and Oxelösunds Hamn AB will assess the development of a future energy hub to enable a shift from LNG/BioLNG to renewable energy sources.
For this, the companies will explore the possibility of developing a cost-competitive and energy-efficient terminal.
Oxelösunds Hamn AB CEO Douglas Heilborn said: “The demand for alternative fuels, such as LNG/liquefied biogas (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.”