Gasum Signs Gas Delivery Deal with Sachtleben

Gasum and chemicals producer Sachtleben have made a deal on the delivery of natural gas to the Pori plant of Sachtleben Pigments Oy.

With the deal, Sachtleben Pigments will replace liquefied petroleum gas with natural gas. The transition will reduce the plant’s CO2 emissions by 12,000 tons each year. The plant produces titanium dioxide, which is used in cosmetics, paints, varnishes, and packaging inks.

The gas will be delivered to the Sachtleben Pigments plant using a gas pipeline from the Gasum LNG terminal that will be built in Tahkoluoto, Pori. A 12 kilometer gas pipeline will be built for deliveries to the Sachtleben Pigments plant. When the pipeline is completed, it can also serve Gasum’s other industrial clients. Gasum is already carrying out similar delivery using its existing gas network, which offers major coverage in southern Finland, reaching nearly half of the country’s population.

”We in Pori, especially at our plant, are very happy about Gasum’s decision to build an LNG-terminal in Tahkoluoto, Pori. We trust that we’re able to start using natural gas as scheduled, in 2016. This, of course, depends on the decision the Ministry of Employment and the Economy will make on investment funds applied for the construction of the terminal”, says Ilpo Harju, CEO of Sachtleben Pigments Oy.

”We believe that in the long term, natural gas will be a more reliable and competitive fuel compared to liquefied petroleum gas and will bring added value to our owner”, says Leena Leppänen, Senior Purchasing Manager at Sachtleben Pigments Oy.

”The terminal enables the use of LNG as a fuel in ship transport. Our raw material and final products are mostly shipped, so the potential in maritime transport is significant,” Leppänen continues.

”We are happy that Sachtleben Pigments has decided to start using natural gas. The use of LNG, especially, will see a major increase in the next years both in Finland and its neighboring regions. LNG is the cleanest fuel available for maritime traffic and will extend the use of natural gas to industries outside the gas grid,” says Tommy Mattila, Head of LNG at Gasum.

No investment decision has been made on the construction of the Pori import terminal. Gasum has submitted an application to the Ministry of Employment and the Economy for investment funds for the LNG terminal.

Gasum has begun initial earthwork at the site of Tahkoluoto oil and chemical harbor. The terminal is planned to be completed in fall 2016.