UK-based small-scale player Avenir LNG is planning to buy Sweden’s Oxgas, the developer of an LNG and bio-LNG terminal in the Port of Oxelosund.
In that regard, the joint venture of Stolt-Nielsen, Hoegh LNG, and Golar LNG has signed a memorandum of understanding with Oxelosunds Hamn, the parent of Oxgas.
Oxgas has secured all environmental and construction permits required to build the LNG/bio-LNG terminal in the port, according to a statement by Avenir.
The firm said this acquisition represents a “unique opportunity for Avenir to commence construction of the terminal at a shorter lead time following finalization of the detailed design and subject to satisfactory due diligence and internal approvals.”
One LNG tank
The Oxgas terminal will comprise 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.
Oxgas previously said the tank would have a capacity of 32,900 cbm.
Moreover, the terminal is adjacent to key industrial consumers and has “excellent” connectivity to roads and rail which would enable access to existing and new demand centers in Sweden, Avenir said.
Avenir said it would operate the full LNG/bio-LNG supply chain utilizing 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 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/bio-LNG to renewable energy sources.
Avenir together with the port would jointly evaluate a “cost competitive, safe and energy efficient” terminal with the aim of implementing CO2 reduction schemes and bridging the development towards a fully renewable net zero energy facility, it said.
CEO Peter Mackey said this project “offers a key strategic growth opportunity for Avenir and advances our stated strategy of becoming the leading small scale LNG supplier.”
“The challenges facing the European gas markets have re-enforced Avenir’s commitment to investing in critical infrastructure and supply chains which enhance energy security in regions of stranded demand and further enable the switching to cleaner, greener and more sustainable forms of energy,” he said.