Skangas, Borregaard extend LNG supply deal

Nordic LNG supplier Skangas said its LNG supply deal with Borregaard, the Norwegian biomaterials producer. 

Under the extended agreement, over the following three-year period, Skangas will remain the main LNG supplier to Borregaard’s production site in Sarpsborg, increasing the delivery volumes.

Borregaard has decided to upgrade their energy supply for the lignin production by changing from waste oil and liquefied propan gas (LPG) to LNG. A new LNG terminal is being built at their production site as the company looks to transition from oil and LPG to LNG.

For Borregaard particularly the CO2 emissions are reduced considerably. By investing in new environmental measures their annual amount of CO2 reduction is estimated to 14500 tons in addition to reduced Nox emissions by up to 50 tons, Skangas said.

Borregaard will receive their LNG by trucks directly from Skangas’ LNG hub at Øra, close to Fredrikstad.