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Preem and Skangass sign LNG-terminal deal

April 2012

Preem and Norwegian Skangass have entered into a partnering agreement and ancillary agreements regarding the construction of Scandinavia’s largest liquefied natural gas (LNG) receiving terminal next to Preem’s refinery in Lysekil on the west coast of Sweden. The investment is estimated at approximately SEK 700 million. Skangass will operate the LNG terminal which is expected to supply Preemraff with approximately 200,000 tonnes of LNG per year. Construction is scheduled to be completed by the end of 2013.

Preem is the largest fuel company in Sweden and had revenues of SEK 91 billion in 2011 and approximately 1,300 employees. Skangass, established in 2007, is part of the Lyse Group and operates one of Europe’s largest LNG production facilities in Stavanger, Norway.

Preem was advised by Mannheimer Swartling in the transaction. The firm’s team included partners Johan Ljungberg and Olof Stenström and associates Josefin Engblom and Maja Stenberg; and partners Mårten Tagaeus, Anders Erasmie, and Stefan Perván Lindeborg on environmental, tax and competition law, respectively.

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