Avenir LNG Limited announced that it has signed a Memorandum of Understanding (MOU) with Oxelösunds Hamn AB for the development and construction of an LNG/BioLNG terminal in Oxelösunds Hamn, Sweden.
As part of the agreement, Avenir intends to acquire 100% of the shares in OXGAS AB, the dedicated project company for the terminal which is currently owned by Oxelösunds Hamn AB.
OXGAS AB has secured all the environmental and building permits required to build the LNG/BioLNG terminal in the port, and represents a unique opportunity for Avenir to begin construction of the terminal with a shorter lead time after completion of the detailed design and subject to satisfactory due to due diligence and internal approvals.
The OXGAS terminal will consist of a single atmospheric tank with full containment, delivery of natural gas via regasification to a local pipeline network and LNG via two trucks for wider distribution outside the port. The terminal is located close to important industrial consumers and has excellent connections to roads and railways that enable access to existing and new demand centers in Sweden.
Avenir will operate the entire LNG/BioLNG supply chain using our fleet of LNG vessels to supply the terminal. OXGAS will allow Avenir to consolidate some of its key bunkering customers in the region to be served from the terminal, which will free up capacity and increase throughput across the fleet.
The companies have also agreed to evaluate the development of a future energy hub for the transition from LNG/BioLNG to renewable energy sources. Avenir, together with the port, will jointly evaluate a cost-competitive, safe and energy-efficient terminal with the aim of implementing carbon dioxide reduction programs and bridging the development towards a fully renewable net zero energy facility.
Peter Mackey, CEO of Avenir LNG Limited, said: “We are delighted to announce this MOU with the Port of Oxelösund, this project offers an important strategic growth opportunity for Avenir and furthers our stated strategy to become the leading small-scale LNG supplier. The challenges that the European gas markets are facing has reinforced Avenir’s commitment to invest in critical infrastructure and supply chains that improve energy security in regions with stranded demand and further enable the transition to cleaner, greener and more sustainable forms of energy.”
Douglas Heilborn, CEO of Oxelösunds Hamn AB, said: “The collaboration with Avenir LNG will allow us to move on to the next phase of our Oxgas project and we are convinced that Avenir is the right partner to work with. The demand for alternative fuels that LNG/LBG will grow in the Baltic Sea shipping industry. A key component for sustainable shipping is developed infrastructure for such fuels. Having access to terminals is important as it creates opportunities for new shipping solutions.”