The use of LNG to reduce annual greenhouse gas emissions of 170 000 tons CO2 at Skangass' new LNG terminal in Lysekil
The use of LNG will reduce annual greenhouse gas emissions of 170 000 tons carbon dioxide (CO2) from the two largest customers of Skangass' new LNG terminal in Lysekil, the company said in its press release.
Because of the LNG deliveries to Lysekil the customer Preem has altered their entire production in the refinery and thereby removed butane and naphtha. The change involves a reduction of the greenhouse gas emissions by 130 000 tons carbon dioxide each year. This corresponds to the emissions of almost 70 000 private cars.
The steel producer SSAB is another major customer that will be served from the Lysekil terminal. At SSAB the natural gas replaces light fuel oil in one of their furnaces. This leads to a reduction of annual carbon dioxide emissions of 40 000 tons.
The Lysekil terminal, north of Gothenburg, is built by Skangass in co-operation with Preem. The LNG is transported by ship from Risavika. Through the gas pipeline from the terminal natural gas is delivered directly into Preems refinery. Annually Skangass will delivery up to 200 000 tons LNG to Preem. This is has an annual contract value of approximately one billion NOK for the next 15 years.
The LNG tank in Lysekil has a capacity of 30 000 m3 and costs around 700 million NOK. The terminal is also used to deliver liquefied natural gas (LNG) to other industry and the maritime market in the area. These customers contribute to additional environmental savings.
In October the work started to build a new LNG terminal in Pori in Finland, the third Skangass terminal in the Nordics. The Pori terminal will have the same capacity of 30 000 m3 LNG. Skangass also has a smaller terminal close to Fredrikstad.
Skangass has a long term agreement for delivery of LNG from the company Risavika LNG Production wholly owned by the Norwegian energy company Lyse. Skangass is owned by Finnish Gasum (51%) and Lyse (49%) Natural gas is clean energy. By cooling down the natural gas becomes liquid and the volume is reduced by 1/600. This makes LNG very suitable for transportation by ship or truck to areas that do not have a gas pipeline grid. The maritime LNG market is also steadily growing where the Nordics is leading the development. LNG as fuel entirely removes emissions of sulphur and particles and gives a substantial reduction of NOx and CO2 emissions.