Skanled pipeline project to continue
This gas transport scheme will nevertheless ensure opportunities for long-term deliveries to Grenland-based industry through a spur from a pipeline linking western Norway with Sweden.
The decision to proceed follows a clarification of plans by the Ineos company for investment at the Rafnes petrochemicals complex in Grenland.
INEOS still has plans to expand the capacity of it's existing cracker to produce a further 100,000 tonnes of ethylene based on a feedstock combination of LPG and ethane. The company plans to expand its Norwegian operations at Rafnes long-term at an appropriate time, when market demand warrants the investment and sufficient Norwegian ethane becomes available. By deciding to continue work, the Skanled group can keep to its intention of submitting a plan for installation and operation (PIO) to the Ministry of Petroleum and Energy by 1 April.
The Skanled project is complex and challenges remain to be overcome, however, including great mutual dependencies between the pipeline and receiving terminals in Norway, Sweden and Denmark.
It also requires government approvals in all three of these countries, as well as the necessary clarification of gas
purchase/sales contracts.
Germany’s Verbundnetz Gas (VNG) has indicated that it consider to join the Skanled project with a 10 per cent interest, which would restore full ownership of the scheme after Hafslund’s withdrawal.
At the same time, the German company wants to reserve transport capacity for two million standard cubic metres per day in Skanled.
“The clarification at Rafnes and VNG’s intended entry to the project help to reduce its risk,” observes vice president Thor O Lohne at Skanled operator Gassco.
“However, important clarifications remain to be secured before a PIO can be submitted to the government.”
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