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Swedegas has confirmed that it is examining the potential for establishing a gas infrastructure in the Gavle region, located in east central Sweden.

The company has signed a memorandum of understanding with Kanfer Shipping for a "potential collaboration" regarding transport of liquefied natural gas (LNG) by sea as well as a storage facility in the Gavle region.

"We are looking to invest in the most efficient solution. This concept is favourable from an operating cost point of view, which will benefit customers in the region," said Johan Zettergren, Swedegas Vice President.

Swedegas is planning to invest in a gas infrastructure solution in the Gavle region that will include a regional gas network and an LNG terminal.

Swedegas is currently in discussion with Kanfer Shipping about what form a flexible and robust solution for supplying the region with LNG/gas might take. Kanfer Shipping's solution would involve LNG being transported to a port on barges pushed by tugs. The barges would then function as floating storage facilities at the port. From there, the LNG, following regasification, can be transported onwards in the Swedegas network.

"We are striving to find competitive and flexible solutions for the entire gas value chain and are currently analyzing different options in order to find the most efficient one," said Zettergren.

Kanfer Shipping is to conduct a preliminary study to allow the parties to proceed towards a decision on the future of the project.

"We are extremely pleased with the confidence Swedegas has shown in us and we are looking forward to being involved in the project in the future. The aim is to work together over the next year to have a complete gas infrastructure solution in place," said Stig Anders Hagen, managing partner at Kanfer Shipping.

"A solution of this nature would provide industry and the transport sector, including shipping, with the opportunity to access competitive, sustainable energy as they gradually make the transition from oil-based products to more eco-friendly alternatives," Swedegas added.

Swedegas

Swedegas is the owner and operator of the Swedish gas transmission grid. Last year, in March, EQT Infrastructure sold the company to Spanish and Belgian gas transmission companies Enagas and Fluxys, who made a joint acquisition of Swedegas on a 50/50 basis.

Fluxys owns gas grids in Belgium, Germany and Switzerland and Enagas has operations in Spain and South America. Both companies have invested in LNG terminals, including terminal facilities in Zeebrugge, Dunkirk and Altamira in Mexico.

LNG terminal in Gothenburg

Swedegas and Dutch storage operator Vopak are the companies behind the construction and operation of the new LNG terminal in Gothenburg, the largest port in the Nordic region. The project is co-financed by the European Union's Trans-European Transport Networks (TEN-T) programme.

The terminal is to be built at Skarvik Harbour, which is located at Gothenburg Energy Port.

LNG at the new terminal will be used to fuel LNG bunker vessels, and product will also be transferred to road tankers or rail trucks for onward distribution throughout the country.