LNG is the cornerstone of the new Nordic gas ecosystem

The liquefied natural gas (LNG) Nordic value chain is built on manufacturing plants, terminals and efficient distribution networks. These elements enable the use of gas on land and at sea.

 

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LNG and Norway – a perfect match

The properties of liquefied natural gas (LNG) makes it ideal for use in heat production, industry, maritime and road transport in a country like Norway. It helps Norway take steps towards a carbon-neutral society and works well with Norway’s unique topography. 

The urgent need to mitigate the effects of climate change and keep global warming under 1.5 degrees is now evident to all countries. Emission reductions are rapidly needed in every sector and all must do their part in the pursuit of delivering a carbon-neutral society. Norway is on the right track with the help of liquefied natural gas (LNG).

LNG offers a competitive fuel solution for immediately reducing emissions, as its lifecycle greenhouse gas emissions are over 20% lower than those of other fossil fuels.

“The beauty of LNG is that it can be used in a number of applications without modifying the product itself in any way. If you look at oil-based products, for example, you have an infinite number of variants. With LNG, the same product can be used in different industries, trucks, ships and more. Gasum has built a robust value chain and we are ready to serve any industrial customer in Norway,” says Halvar Rommetved, Sales Manager, Gasum Norway.

LNG enables the transition to a carbon-neutral future

LNG also plays an important role as an enabler in the transition to renewable fuels. If an industrial company takes the decision to use LNG, they have also given themselves the opportunity to utilise liquefied biogas (LBG). The same gas infrastructure that was built for LNG can be used for LBG, making the shift to LBG easy and cost-efficient.

LBG is completely renewable, delivers low emissions and can also allow a company to achieve a negative carbon footprint. With LBG, greenhouse gas emissions can be reduced by up to 85% compared to fossil fuels. The use of LBG and LNG as fuel, reduces carbon dioxide emissions and local particulate emissions significantly, which improves local air quality. Furthermore, LNG and LBG are necessary in the transition to a carbon-neutral future, while simultaneously enabling significant savings in fuel costs.

LNG is a perfect fit into the Norwegian energy ecosystem

Norway’s unique topography is able to give LNG a competitive advantage. Norway has the world’s second longest coastline (58,133 km), and this fact, combined with the country’s long, beautiful fjords, makes it perfect for LNG. The properties of LNG allow the fuel to be both shipped and hauled in large quantities directly to customers in any corner of the challenging Norwegian landscape. In addition, compared to other Nordic countries, Norway doesn’t have a major gas grid infrastructure and so LNG is a natural logistical solution in terms of transporting large quantities of energy to customers.

“It is a privilege to act as an energy supplier to this unique cluster. Gasum is in the driver’s seat in further expanding the gas ecosystem in Norway. Øra is, in addition to an active industry cluster, a logistical centre with a large cargo port, Borg Havn. This is a great opportunity to expand the gas ecosystem in our primary markets and in our own backyard,” Rommetvedt explains.

Nordic energy company Gasum has a large LNG production plant in Risavika and a distribution terminal in Øra, making the distribution of gas to the Norwegian energy ecosystem easy and cost-effective.

Gasum’s LNG production plant in Risavika, Sola municipality, has an annual production capacity of 300,000 tonnes of LNG. There is also a bunkering facility for maritime customers linked to the plant. Natural gas is brought to the plant by a subsea pipeline system from the Kårstø processing plant. The Kårstø processing plant in Northern Rogland plays a key role in the transport and processing of gas by condensing it from major sites on the Norwegian continental shelf.

In addition to the Risavika plant, Gasum’s LNG terminal in Øra is located in the middle of an industrial cluster that contains several energy demanding industries. The cluster itself is an ecosystem where waste from one company acts as raw material in the production of another company. The industries at Øra have seen the value of this kind of closed system and have turned it into a competitive advantage. Recently, the National Centre of Circular Economy was established in the middle of this cluster, making Øra a centre for circular economy operations. 

11.3.2020

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