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At the Port of Gothenburg, construction of the terminal for liquid natural gas (LNG) has moved to the next phase. The City of Gothenburg has approved the detailed plans and demolition activities have now commenced to make way for the LNG facility. A new company that will run the terminal has also been established.

The aim is to be able to offer LNG by 2015 when shipping will need to switch to more eco-friendly fuels when operating in Swedish waters. Industry will also require LNG as it makes the change from oil and coal.

The Swedish gas infrastructure company Swedegas and the Dutch company Vopak have set up a joint company to construct and operate the terminal. The project is being run in collaboration with the Port of Gothenburg, which will invest in the necessary port infrastructure. With effect from 2015, the port authority will reward vessels that use LNG in the form of reduced port charges.

The terminal will be built at Skarvik, which is located at the Port of Gothenburg Energy Port. Tankers carrying LNG will discharge at the quayside and the gas will be stored temporarily at the terminal. It can be used to load LNG bunker vessels and it can be transferred to road tankers or rail trucks for onward distribution throughout the country. The location also provides for the potential future connection to the Swedish gas grid.

The terminal is part of a collaborative venture between Rotterdam and Gothenburg, where the aim is to build up an LNG infrastructure. The EU Commission considers this to be one of the most prioritised infrastructure initiatives in Europe and is supporting the project financially with a grant of EUR 34 million.

There are environmental benefits to be gained from using LNG in shipping and industry, as, in comparison with traditional oil-based fuels, nitrogen oxide emissions and carbon dioxide emissions are reduced significantly (85-90% and 25% respectively) , while sulphur and particle emissions are reduced to almost zero, without creating any undesired by-products.