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Skangass LNG customers to reduce GHG emissions

LNG Industry,

The use of LNG will reduce annual greenhouse gas emissions by 170,000 t of carbon dioxide (CO2) from Skangass’ two largest customers at the Lysekil LNG terminal.

Emissions reduction

Thanks to LNG deliveries to Lysekil, the customer Preem has altered its production in the refinery and consequently removed butane and naphtha. The change involves a reduction of the greenhouse gas emissions by 130,000 tpa of CO2. This corresponds to the emissions of approximately 70,000 cars.

Steel producer SSAB is another customer that will be served from the Lysekil terminal. At SSAB, the natural gas replaces light fuel oil in one of their furnaces. This leads to a reduction of annual carbon dioxide emissions of 40,000 t.

Lysekil LNG terminal

The Lysekil terminal, north of Gothenburg, is being built by Skangass in cooperation with Preem. The LNG is transported by ship from Risavika. Through the gas pipeline from the terminal, natural gas is delivered directly into the Preem refinery. Skangass will delivery up to 200,000 tpa of LNG to Preem. This contract has an annual value of approximately NOK 1 billion for the next 15 years.

Commenting on the project, Skangass CEO, Tor Morten Osmundsen, said: “The Lysekil terminal and the cooperation with Preem is a good example of Skangass’ business idea: to help our customers meet their goal of energy efficiency and a more environmentally [friendly] daily operation.”

The LNG storage tank in Lysekil has a capacity of 30,000 m3 and costs approximately NOK 700 million. The terminal is also used to deliver LNG to other industries and the maritime market in the area. These customers contribute to additional environmental savings.

LNG terminal in Finland

In October, work commenced on the construction of a new LNG terminal in Pori, Finland; this will be the third Skangass terminal in the Nordics. The Pori terminal will have the same capacity of 30,000 m3 LNG. Skangass also has a smaller terminal close to Fredrikstad.

Adapted from press release by Katie Woodward

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