EU Millions for LNG Refueling Terminal in the Port of Gothenburg

| Sweden, Gothenburg

Port of GothenburgThe provision of Liquefied Natural Gas (LNG) to shipping by 2015 at the latest is the goal of a partnership between private infrastructure companies and the ports of Gothenburg and Rotterdam. Now the project will receive SEK 305 million (USD 47 million) in support from the EU.

“The Community’s support is a clear signal of how important shipping is for sustainable transport in Europe,” says Magnus Kårestedt, CEO of the Port of Gothenburg.  A formal decision is expected to be reached in a few months, indicative that the investment in LNG terminals in Rotterdam and Gothenburg is considered one of the European Commission’s top priorities in their “Motorways of the Seas” project (TEN-T Priority Project 21). Both ports are located within the Sulphur Emission Control (SECA) Areas.

In Gothenburg, Dutch independent tank storage provider Vopak and Swedish gas infrastructure company Swedegas will jointly invest in the LNG terminal to provide both shipping and industry with LNG.  Collaboration with the Port of Rotterdam involves, for example, building the necessary in-port infrastructure, developing regulations for the handling of LNG, and contributing to increased knowledge of LNG as ship fuel.

“A major benefit of the partnership is also that we can send out a strong signal to the market that LNG will be available at both Europe’s largest port and the largest [port] in Scandinavia. Shipping companies needs to be assured of this before investing in new vessels for LNG operation,” says Lars Gustafsson, CEO of Swedegas.

Environmental benefits of using LNG in shipping and industry are considerable: sulfur and particulate emissions are reduced to near zero, nitrogen emissions by 85 to 90 percent and carbon dioxide emissions by 25 percent.

LNG is natural gas chilled to liquid form, thereby reducing 600 times in volume. It is possible to transport on ships, trains and trucks, and can thereby also reach parts of the country with no gas. An LNG terminal in Gothenburg may impact not only on Sweden’s West Coast but also for industry in other parts of the country.

(Source: Port of Gothenburg and Swedegas)

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