London-based LNG supply company Avenir LNG and Swedish port operator Oxelosunds Hamn have entered into a memorandum of understanding (MOU) for the development and construction of an LNG/bioLNG terminal in the Port of Oxelosund in south-eastern Sweden.
As part of the agreement, Avenir intends to acquire 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.
Avenir will commence construction of the terminal following finalisation of the detailed design and subject to satisfactory due diligence and internal approvals.
The Oxgas Terminal will consist 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 and has connectivity to roads and rail to enable access to existing and new demand centres in Sweden.
Avenir will operate the full LNG/bioLNG supply chain utilising 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, freeing up capacity and increasing throughput across the fleet.
