Finnish state-owned gas company Gasum has secured a new deal for liquefied natural gas (LNG) delivery and a terminal in Norway, Kallanish Energy reports.
The contract, with Norwegian steel manufacturer Celsa Armeringsstål AS, was announced on Friday and includes the supply of LNG and the construction of a customer terminal in the Mo Industrial Park, located in Mo i Rana. Financial terms of the agreement were not disclosed.
Celsa Armeringsstål produces steel manufactured from scrap metal and currently aims to reduce its carbon dioxide (CO2) emissions by utilizing LNG to power its manufacturing facilities. Its operations currently consume approximately 500 gigawatts of energy annually.
The company stated its objective to lower CO2 emissions by 50% by 2030 and to be carbon-neutral by 2050. Its contract with Gasum is “a strategic step towards our short-term sustainability goals, without compromising our cost-effectiveness,” according to chief executive, Carles Rovira.
The new terminal in Mo i Rana is expected to commence operations in July next year. LNG will be supplied to Mo i Rana by road transport from Gasum’s part-owned terminal in Tornio, Northern Finland.
“The new terminal gives us an opportunity to connect with other potential customers in the area who are interested in reducing their emissions by choosing LNG”, said Halvar Rommetvedt, sales manager at Gasum.
Earlier this month, Gasum expanded its reach in the Nordics with the launch of a new LNG station in Sweden for the automotive sector, specifically heavy-duty vehicles (HDV), developed in cooperation with Volvo. [See related article]
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