Gasum enters the Swedish gas grid with an agreement with Nynas AB

Gasum has signed an agreement with the Swedish oil and bitumen company Nynas AB for delivering natural gas to its refinery in Gothenburg on the west coast of Sweden. The natural gas will be used as fuel in the refinery’s hot oil burner, and in its new combined atmospheric and vacuum heater for the crude unit on site.

“We are extremely pleased with this contract. Nynas is our first industry customer in the Swedish gas grid, so this is a significant milestone for Gasum. This really emphasizes our role as a gas market operator serving the whole Nordic region. As a truly Nordic energy company, we hope to provide our industry customers with a unique and competitive offering, which will help them in transitioning towards more sustainable sources of energy”, Gasum’s Vice President Tommy Mattila says.

Nynas is Sweden’s largest producer of bitumen. Bitumen, the binding component in asphalt, is mainly used for road construction and paving. Switching from oil to natural gas, in combination with an improved efficiency, reduces their CO2-emissions by 34 per cent and their NOx- and SOx -emissions by 80 per cent. The switch also furthers the industry’s transition to fossil-free and renewable biogas.

“This is an example of Nynas now implementing a series of investments and measures in our refinery system with the aim of reducing our greenhouse gas emissions. We work actively with suppliers and other partners to seek new and effective solutions to meet the climate challenges facing the industry”, says Rolf Allgulander, Nynas Vice President Manufacturing.

Flexibility and reliability vital for the partnership

The expansion of Gasum’s natural gas market to the Swedish gas grid was made possible by their existing co-operation with Nynas. Gasum already supply liquefied natural gas (LNG) to the Nynäshamn refinery. The new agreement strengthens the partnership.

The natural gas will be used in the process of manufacturing bitumen, which is a seasonal product. Thus, the demand for fuel will be high from spring to autumn. It is extremely important that there are no interruptions to the gas supply during the industry’s peak season. This means that flexibility and reliability of the gas supply is vital for the partnership.

“This is why the agreement’s conditions are focused on supply. The signing of the agreement is a starting point for a long-term cooperation that enables us to enter the Swedish gas grid and offers Nynas a flexible and reliable gas supply that provides suitable cost optimization in an industry that relies heavily on its peak season”, Mattila says.

Gasum’s advantage for industry customers in Sweden is its unique and broad offering of natural gas and fossil-free biogas that support customers in their strive for a reduced carbon footprint. It is a priority for Gasum to plan the co-operation to suit its customers’ needs in the best way possible.