Swedish port company OxGas plans to build a new methane import terminal that can supply LNG or liquefied biogas to both onshore and marine customers.
The facility at the Port of Oxelosund, to the southwest of Stockholm, is expected to cost SEK 800m to 850m ($78m to $83m).
OxGas, which is fully owned by the port, will build a 30,000-cbm capacity terminal designed to supply industrial, local and marine customers.
Gothenburg-based MAN Cryo, which was acquired by MAN Energy Solutions in 2015, has been appointed as the owner's engineer as the port develops and builds the new multi-functional facility, which is scheduled for start-up at the end of 2022 or early in 2023.
OxGas and Port of Oxelosund chief executive Douglas Heilborn told TradeWinds that the driver for the new terminal is to supply LNG to SSAB’s steel production plant in Oxelosund, which is switching over its blast furnace to scrap melting.
This is part of Sweden's ambitious plans to move to zero net emissions of greenhouse gases by 2050.
Marine customers
Heilborn said the terminal, which will be based at an existing jetty, will ship in LNG and start by bringing in liquefied biogas by truck as a drop-in fuel.
He said the facility will also be able to offer LNG bunkering via an ex-pipe solution to vessels at the jetty.
Heilborn anticipates that marine customers could include bulker and product carrier operators working in the Baltic Sea region.
The facility will also serve other industrial customers in Sweden by truck and rail.
"After its construction in two years, the terminal will be a key element in the development of the port, Oxelosund as a city and the accessibility to liquefied methane in Sweden in the coming decades," Heilborn said.
MAN Cryo has been closely involved in the development of previous LNG terminal projects in Sweden.
"We strongly believe in LNG and other sustainable synthetic fuels as an important strategic pillar to decarbonise the power industry, transport and industry sector," said Carsten Dommermuth, MAN Energy Solutions' senior manager for international business development.
