BioLNG terminal planned for Port of Oxelösund

Avenir intends to acquire 100% of the shares in OXGAS, the dedicated project company for the terminal which is currently owned by Oxelösunds Hamn. OXGAS has already secured all environmental and construction permits required to build the LNG/BioLNG terminal in the Port.

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. The terminal is adjacent to key industrial consumers, including SSAB’s Oxelösund steel works, and has excellent connectivity to roads and rail which will enable access to existing and new demand centres in Sweden. SSAB is currently engaged in a project to convert the blast furnaces at Oxelösund to an electric arc furnace configuration.

Avenir will operate the full LNG/BioLNG supply chain utilizing 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.

Douglas Heilborn, CEO of Oxelösunds Hamn, said “Teaming up with Avenir LNG will allow us to proceed into the next phase with our Oxgas project, and we are convinced Avenir is the right partner to work with. 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.”