New LNG terminal will open in Tornio, Finland 2018.
The new Tornio terminal, which deals with storage, regasification and delivery, is set to be up and running in 2018. The terminal will be the largest of its kind in the Nordic region, supplying LNG to customers in the Finnish and Swedish mining, steelmaking and shipping industries. It is ordered by a Manga Oy AB, supported by the finnish state and will be built by Wärtsilä OY.
“This represents a major industrial investment in this area of southern Lapland, known as Sea-Lapland,” says Timo Mahlanen, Senior Business Development Manager, Wärtsilä Power Plants. “The Tornio terminal will support the region’s transition from oil to gas and help reduce CO2 and sulphur emissions, in response to the stricter environmental demands in the north of Sweden and Finland.”
LNG is the clear, colourless, odourless, non-toxic liquid that forms when gas is cooled to -162ºC. Compared with other fossil fuels, LNG is clearly more sustainable, has 25% less carbon footprint, when used in the power sector compared with fuel oil, and 50% less carbon footprint compared with coal, 99% less sulphur oxide (SOx) and 85% less nitrogen oxide (NOx).
The global LNG carrier fleet is growing. In 2013, 16 new giant tankers entered the global fleet, followed by a further 31 last year. Once the LNG tankers reach their destination, the LNG needs to be stored and, in some cases, returned to gas form, before it can be distributed to the end customer. This is where terminals such as the one in Tornio come into play.
“The Tornio terminal will provide a complete range of LNG services,” explains Leif Enlund, Wärtsilä Area Manager Sales Proposals. “This includes storage in a 50,000 m3 tank, regasification, pipeline distribution, ship bunkering, trans-shipment, as well as truck and container loading to facilitate the re-distribution of the LNG in its liquid form.”
Wärtsilä was awarded the contract to develop the Tornio terminal by ManGa LNG Oy, a Finnish consortium consisting of four companies with local business interests: steel producers Outokumpu and SSAB, Finnish energy company EPV and Skangass, a Norwegian gas delivery company.
“Outokumpu will use the LNG in its stainless steel factory, while EPV will use it at a local power plant,” Mahlanen explains. “Meanwhile, SSAB will transport the LNG by truck to its steel mill located in Raahe and Skangass will provide LNG to other potential customers in the region, as well as for ship bunker fuel.”
“Our customer wanted one single supplier to provide a turnkey solution, including all the Engineering, Procurement and Construction (EPC) work and Wärtsilä was really the only company with the capacity and expertise to take it on,” Enlund says, adding that Wärtsilä has also been awarded an exclusive ten-year contract to provide all the service and maintenance for the terminal.
The future of the LNG market looks according to Wärtsilä bright – not only for land-based operations, but also at sea. For example, as more and more coastal areas, including the waters surrounding the Nordic countries, are converted into Sulphur Emission Control Areas (SECAs), demand for more sustainable fuels will only continue to grow. As LNG contains next to no sulphur, far fewer particulates and less carbon, it is one of the fuels that complies with the limits enforced by the SECAs.
Manga LNG Oy has received from the Finnish Ministry of Employment and the Economy, an LNG-terminal investment aid of 33,2 million euros for building the terminal.
Based on an article in Wärtsilä magazine Twentyfour7 and a pressrelease from Manga LNG OY no 1-2015.