Wärtsilä receives full notice to proceed for its first LNG terminal

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Tornio Manga LNG-terminalWärtsilä has been given full notice to proceed (NTP) from Manga LNG for the supply of a liquefied natural gas (LNG) import terminal in Tornio, Northern Finland.

Wärtsilä will commence construction on the site near the port of Tornio in January. Manga LNG is a joint venture of Outokumpu Group, Svenskt Stål AB (SSAB), Skangass and EPV Energy.

Wärtsilä initially announced this project in January this year and the order, valued at approximately €100 million, will be included in Wärtsilä’s order intake in December 2014.

The turnkey delivery of the first import terminal supplied by Wärtsilä includes complete unloading, storing and regasification equipment for LNG. The capacity of the LNG storage tank will be 50,000 cubic metres. A 10-year maintenance agreement was also signed between the parties and the first maintenance agreement for an LNG terminal complements Wärtsilä’s service proposition and experience within dual fuel and gas engines and related equipment.

One of the main users of the imported natural gas will be the Outokumpu Tornio steel mill and a gas pipeline will be built to the nearby Röyttä industrial site, where the mill is located. Additional potential gas users are mines, factories and other industrial customers in Northern Finland and Sweden. Railroad and truck transportation from the terminal will be available and the terminal can also be used for LNG bunkering as well as to supply fuel for LNG-powered ships.

“The world is switching to natural gas, and we make it available in new places. With our unique turnkey offering, we are ready take a leading role in end-to-end LNG systems,” said Tore Björkman, Vice President, LNG and Nuclear, Wärtsilä Power Plants.

Wärtsilä, recognised for its market-leading gas engine technology, provides technology and services throughout the entire LNG distribution chain. Wärtsilä’s portfolio includes liquefying technology, various gas-handling solutions, the design of LNG transport vessels, gas-fired marine propulsion solutions, LNG loading and unloading facilities, storage facilities and regasification. A gas-fired power plant can be combined with an import terminal in a joint turnkey project.

LNG is replacing oil and other fuels worldwide. The environmental benefits are significant. In power generation, natural gas produces about 30% fewer carbon emissions than oil, while sulphur dioxide emissions are reduced by some 99%. LNG-fuelled ships have no sulphur emissions and 92% fewer nitrogen oxide emissions than vessels powered by heavy fuel oil.