A recent corporate acquisition has made Gasum the largest Nordic liquefied natural gas (LNG) operator.
Gasum will acquire a 51% stake in Norwegian Skangass’ distribution operations from the Lyse Corporation. The acquisition is part of Gasum’s strategy to improve the availability of competitive LNG in Finland. The aim of the joint venture is to take a strong position in the growing Nordic LNG market.
Nordic LNG market
The Nordic countries are becoming a significant market for LNG. The new emission regulations for sulfur dioxide, which come to effect in 2015, will increase the need for cleaner fuels in marine traffic. Improving the availability of LNG will serve not only marine traffic but also the increasing needs of industrial clients outside the natural gas grids and future needs of heavy duty traffic.
Gasum executive VP, Johanna Lamminen, commented: “The acquisition enables the creation of sufficient market coverage and distribution infrastructure in the Nordic countries, giving Gasum the possibility to offer a much more competitive product for end users in the maritime, industry and heavy transport sectors.”
New LNG terminals
Skangass will add to delivery reliability of Gasum’s LNG offering through new terminals and tankers. It will also enable fast development of gas infrastructure in the Nordic countries. Large, combined import quantities will result in more cost-efficient LNG sourcing and will consequently enhance the opening of new LNG terminals.
The acquisition will geographically link the Finnish, Norwegian and Swedish markets, making possible the delivery of competitive LNG. The acquisition will improve the development of purchasing and delivery services, efficiency in the logistics chain and freighting, and raise overall storage capacity.
- Gasum’s LNG business unit, including the Porvoo production plant and the planned Turku/Pori terminal, will become a part of the new joint enterprise.
- The Skangass production plant in Risavika will remain under Lyse’s ownership, however a long term delivery contract regarding the use of the unit has been made with the new joint enterprise, Skangass A/S.
- Skangass’ Öra terminal in Norway, the Lysekil terminal still under construction and the planned Gävle terminal, both in Sweden, will be transferred to the new company.
- Skangass has charter parties with two tankers, and after the acquisition the companies will have a total of 20 LNG tank trucks.
- Tor Morten Osmundsen will continue as the CEO of the new Skangass, and Johanna Lamminen will become chairman of the board.
Finnish energy infrastructure
Gasum is investing in the development of Finland’s gas infrastructure in the company’s key growth areas, as well as developing the Finnish energy infrastructure through environmentally friendly solutions. Within the schedule given by the EU infra package, Gasum will proceed with researching different execution options for the planned Finngulf and Baltic-connector projects. Execution options include the possible, economically profitable compromise with Estonia.
Adapted from press release by Katie Woodward
Read the article online at: https://www.lngindustry.com/small-scale-lng/24022014/gasum_acquires_stake_in_skangass_208/
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