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Skangas extends agreement with Borregaard

Borregaard continues their co-operation with Skangas for Liquefied Natural Gas (LNG) and extends the current supply agreement. For the next three years Skangas will remain their main LNG supplier and deliver an increased amount of LNG to Borregaard’s production site in Sarpsborg.

“After four years of delivering LNG to Borregaard we are very happy that they will continue our agreement,” says Kimmo Rahkamo, CEO of Skangas. “Security of supply is one of the key elements for us as an energy provider. A continuous relationship with existing customers is a proof of being a reliable supplier”, he concludes.

Borregaard has decided to upgrade their energy supply for the lignin production by changing from waste oil and liquefied propan gas (LPG) to LNG. A new LNG terminal is being built at their production site. Transferring from oil and LPG to LNG will contribute to a cleaner environment and is a safety improvement.

Using LNG provides significant environmental benefits in terms of emissions to air. For Borregaard particularly the CO2 emissions are reduced considerably. By investing in new environmental measures their annual amount of CO2 reduction is estimated to 14500 tons in addition to reduced Nox emissions by up to 50 tons.

For some industry customers LNG is a large part of the energy consumption. It is important with a safe and reliable supply chain where delivered volumes are delivered at agreed time. Skangas has monthly close to 600 truck deliveries to large industrial corporations across the Nordics. Borregaard will receive their LNG by trucks directly from Skangas’ LNG hub at Øra, close to Fredrikstad.