Sweden: Skangass, SSAB EMEA Sign Gas Supply Agreement
Skangass AS has entered into a long term agreement of natural gas supply to the Swedish corporation SSAB EMEA AB in Borlänge. The natural gas will replace fuel oil in one part of the production process at SSAB.
The usage of natural gas will lead to a considerable reduction of CO2 emission in Borlänge. The annual emission will be reduced by 40.000 tons. This is comparable to the emission size of 22.000 diesel vehicles annually driving 15.000 kilometers.
The agreement includes building a regasification terminal at SSAB’s premises in Borlänge. The terminal, which will be owned by Skangass, is being built in close co-operation with SSAB-owned project group. The terminal will employ the hot water evaporator attached to the local district heating system. It will be finished in the second half of 2014. The distribution of natural gas from Skangass to Borlänge will be by road.
”We are very proud and content to be able to contribute to SSAB’s conversion to a more environmentally friendly fuel than today’s fuel oil”, says Roger Göthberg, Sales and Marketing Director in Skangass. ”Skangass is rapidly growing. This agreement together with the establishment of Sweden’s largest receiving terminal for liquified natural gas in Lysekil are important steps in our further development in Scandinavia”, he continues.
Skangass produces LNG at their plant in Risavika, outside Stavanger. The LNG is dispensed to distribution terminals in Scandinavia. The terminal in Lysekil will be the main LNG source for SSAB and the transportation will be by road. Skangass continuously seeks to optimise their LNG distribution, both related to costs and environmental issues. This means there might be other ways of distribution to Borlänge in the future.
”The agreement with SSAB is a result of the competence Skangass has developed through own production, distribution and not to forget our technical knowledge. This gives our customers the needed comfort when converting to new energy in their production processes. We are certain that our work with developing LNG for the industrial and marine market will lead to other industries discovering natural gas as a viable energy source,” concludes Mr. Göthberg.
LNG World News Staff, September 23, 2013; Image: Skangass