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Skangas reports that on October 17 it completed the first small-scale liquefied natural gas (LNG) loading at the Statoil-operated LNG plant at Melkoya Island, located west of Hammerfest, Norway.

The loading operation was conducted at the large-scale jetty at the Melkoya LNG plant. The jetty is constructed for conventional-sized LNG vessels.

The cargo was supplied to the Skangas-chartered Coral Energy. The vessel is a small-to-medium-scale LNG carrier with a capacity to store up to 15,600 cubic metres (cbm).

"This terminal is an addition to our existing LNG sources. Having several LNG sources supports our customers and us with additional security of supply and it increases our opportunities," explained Kimmo Rahkamo, CEO of Skangas.

"In addition, a future possible supply alternative from the northern part of Norway could make it easier to open up for new deliveries along the entire coast of Norway," Rahkamo added.

From Snohvit to Melkoya to Lysekil

Gas at the Melkoya terminal is sourced from the Snohvit natural gas field in the Norwegian Sea. The gas is then converted to LNG in Melkoya to make it possible to transport via purpose-built vessels.

The LNG loaded by the Coral Energy at Melkoya was transported to Skangas's terminal in Lysekil, Sweden.

In addition to Lysekil, Skangas also has a liquefaction plant in Risavika, Norway, and operates LNG terminals in Ora (Norway) and Pori (Finland).

Cooperation with Statoil

Earlier this year, the Coral Energy was also the first small-scale LNG tanker to load LNG at the port of Klaipeda, Lithuania.

The vessel was loaded under an agreement signed in September 2016 by Statoil, Litgas, Lietuvos Duju Tiekimas (Lithuanian Gas Supply). Under the three-way agreement, Statoil sells LNG to small-scale buyers and Litgas and Lietuvos Duju Tiekimas provide modulation and balancing services.

Skangas also has an agreement to supply LNG to Statoil's platform supply vessels (PSVs) from several bases along the Norwegian west coast, located at Mongstad, Floro (Saga Fjordbase) and Kristiansund (Vestbase). Additionally, Skangas has a contract to supply LNG to Statoil's tugs at Karsto.

The LNG is to be delivered from Skangas's liquefaction plant by the Coralius, which is the first LNG bunker vessel to be built in Europe.

The agreement with Statoil is valid from April 1, 2017, until the end of 2020, with an option for two plus two years.