Of the project

Tornio Manga LNG-project

Finnish industrial companies Outokumpu and Ruukki Metals, energy company EPV Energy and gas company Gasum have agreed on project to utilize liquefied natural gas (LNG) on industrial processes, energy production and shipping. Project development company Manga LNG Oy will prepare contracts needed for LNG terminal construction, gas procurement and logistics.

According to plan, a reception, unloading and bunkering facilities, LNG vaporising facility and one 50.000 m3 storage tank will be constructed in Tornio terminal. For gas deliveries, a pipeline will be built to Röyttä industrial site. In addition, a truck loading facility for LNG trucks will be built. From Tornio terminal the LNG will be delivered with trucks or by railroad to customer terminals and consumption destinations in Northern Finland and Sweden.

The final investment decision will be made during 2014. The building phase of the terminal is during 2014 – 2018 and LNG deliveries will commence during 2018. Technical basic engineering was completed in February 2013. The cost estimate for the terminal is approximately 100 million euros. The turnkey (EPC) contract tendering process of the terminal was carried out during 2013 and Wärtsilä was chosen as the contractor.
Tornio Manga LNG started co-operation with Gasum Ltd on LNG procurement and logistics in April 2013. The co-operation will continue in joint development company. The co-operation is aiming on substantial cost savings and to improve LNG security of supply for Pansio and Tornio terminals. For LNG shipments a joint venture is planned with a shipping company specializing on LNG. The size of the vessel will be from 18.500 m3.

The environmental impact assessment was completed in August 2013, without major remarks neither from authorities nor stakeholders.

LNG replaces fossil fuels in industrial use and energy production and reduces substantially particle, NOx, SOx and CO2 emissions compared to current levels. Industrial companies are the biggest gas users, but big enough terminal capacity improves possibilities for the shipping industry to meet the new sulphur emission restrictions, valid from 2015, by using LNG as a ship fuel in Bay of Bothnia.