Norwegian utility provider Lyse Gass and shipowner IM Skaugen are setting up a joint venture, Nordic LNG, to create “a unique LNG 'small scale' supply chain for the Nordic markets”. A LNG liquefying plant with an annual production capacity of 300,000 tonnes of LNG will be built by Lyse, and its partners. It is expected to come on-stream in 2010, creating the North European market leader in LNG.
IM Skaugen is currently engaged in a building program of up to ten sophisticated LNG carriers in China. Out of these 10 carriers one will initially be assigned to the joint venture, called Nordic LNG, full time from 2010.
Skaugen says that its ambition in this new market has been not only to transport the LNG but also take an active part in the whole supply chain and up to the point of acting as a seller of LNG directly to the end-users. It adds: “With the small-scale LNG concept, natural gas in the form of LNG can be supplied directly to end-users located outside the normal cover of pipeline systems. This will give these end-users the unique opportunity to switch to natural gas - an energy source with significantly lower emission levels of greenhouse gases. The Nordic LNG concept gives us the opportunity to be an early mover into an exciting new market currently under development around the globe - that of small-scale distribution of LNG.” Nordic LNG A will be owned 40% by Skaugen and 60% by Lyse and its partners. A statement says: “The partners in the Nordic LNG venture have decided on a business model where the investments made by each partner will be carried on its own balance sheets. These assets will then be pooled into an "EBITDA sharing pool" where the IMS share of the EBITDA from the business will be approximately 20% . The final share will depend on the size of the final investments made when the plant and the vessels are commissioned.”
IM Skaugen is currently engaged in a building program of up to ten sophisticated LNG carriers in China. Out of these 10 carriers one will initially be assigned to the joint venture, called Nordic LNG, full time from 2010.
Skaugen says that its ambition in this new market has been not only to transport the LNG but also take an active part in the whole supply chain and up to the point of acting as a seller of LNG directly to the end-users. It adds: “With the small-scale LNG concept, natural gas in the form of LNG can be supplied directly to end-users located outside the normal cover of pipeline systems. This will give these end-users the unique opportunity to switch to natural gas - an energy source with significantly lower emission levels of greenhouse gases. The Nordic LNG concept gives us the opportunity to be an early mover into an exciting new market currently under development around the globe - that of small-scale distribution of LNG.” Nordic LNG A will be owned 40% by Skaugen and 60% by Lyse and its partners. A statement says: “The partners in the Nordic LNG venture have decided on a business model where the investments made by each partner will be carried on its own balance sheets. These assets will then be pooled into an "EBITDA sharing pool" where the IMS share of the EBITDA from the business will be approximately 20% . The final share will depend on the size of the final investments made when the plant and the vessels are commissioned.”