Avenir LNG to build LNG and BioLNG terminal in Port of Oxelösund

UK-based LNG company Avenir LNG has signed a deal with Oxelösunds Hamn to build an LNG and BioLNG terminal up in the Port of Oxelösund, Sweden.

As part of the agreement, Avenir intends to buy 100 per cent of the shares in Oxgas, the dedicated project company for the terminal which is currently owned by Oxelösunds Hamn.

Oxgas has secured all environmental and construction permits required to build the LNG/BioLNG terminal in the port. This represents a unique opportunity for Avenir to start construction of the terminal at a shorter lead time following finalisation of the detailed design and subject to satisfactory due diligence and internal approvals.

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.

Avenir will operate the full LNG/BioLNG supply chain using 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 also agreed to evaluate the development of a future energy hub for the transition from LNG/BioLNG to renewable energy sources.

Avenir together with the Port will jointly evaluate a cost-competitive, safe and energy-efficient terminal with the aim of implementing CO2 reduction schemes and bridging the development towards a fully renewable net zero energy facility.

Peter Mackey, CEO of Avenir LNG, said “We are pleased to announce this MoU with the Port of Oxelösund, 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 reinforced 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.”

Douglas Heilborn, CEO of Oxelösunds Hamn AB, 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.”