Gasum to Buy Stake in Skangass

Gasum will acquire the majority (51 percent) of Norwegian Skangass’ distribution operations from the Lyse Corporation. The acquisition is a part of Gasum’s strategy of improving the availability of competitive liquefied natural gas in Finland.

The aim of the joint venture is to take a strong position in the growing Nordic LNG market.

The Nordic countries are becoming a significant market for LNG. The new emission regulations for sulphur dioxide coming to effect in 2015 will increase the need for cleaner fuels in marine traffic. Improving the availability of LNG will serve not only marine traffic but also the increasing needs of industrial clients outside the natural gas grids and future needs of heavy duty traffic.

“The acquisition enables the creation of sufficient market coverage and distribution infrastructure in the Nordic countries, giving Gasum the possibility to offer a much more competitive product for end users in the maritime, industry and heavy transport sectors,” says Johanna Lamminen, Gasum’s Excecutive Vice President.

Skangass will add to delivery reliability of Gasum’s LNG offering through new terminals and tankers. It will also enable fast development of gas infrastructure in the Nordic countries. Large, combined import quantities will result in more cost-efficient LNG-sourcing and thus enhance the opening of new LNG-terminals. The acquisition will join the Finnish, Norwegian and Swedish markets geographically, making the delivery of a competitive product possible in the entire area. The acquisition will improve the development of purchasing and delivery services, efficiency in the logistics chain and freighting, and raise overall storage capacity.

Both Gasum and Skangass are experienced operators in LNG. Gasum has been developing its LNG operations since 1996 and the company has long-term experience in the acquisition of natural gas. Skangass began its LNG operations in 2011. The company has developed LNG distribution markets in Norway and Sweden. Skangass has its own processing plant and supply chains for both maritime and industrial clients.

Through the acquisition Gasum’s LNG business unit, including the Porvoo production plant and the planned Turku / Pori terminal will become a part of the new joint enterprise.

The Skangass production plant in Risavika will remain in Lyse’s ownership, but a long term delivery contract regarding the use of the unit has been made with the new joint enterprise, Skangass A/S. Skangass’ Øra terminal in Norway, the Lysekil terminal still in construction and the planned Gävle terminal, both in Sweden, will be transferred to the new company. Skangass has charter parties with two tankers. After the acquisition the companies will have a total of 20 LNG tank trucks.

Tor Morten Osmundsenwill continue as the CEO of the new Skangass, with Johanna Lamminen, Gasum’s Excecutive Vice President as the chairman of the board.

Gasum is investing in the development of Finland’s gas infrastructure in Gasum’s key growth areas as well as developing the Finnish energy infrastructure through environmentally friendly solutions. Within the schedule given by the EU infra package, Gasum will proceed with researching different execution options for the planned Finngulf and Baltic connector projects. Execution options include the possible, economically profitable compromise with Estonia.

Press Release, February 24, 2014; Image: Skangass

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