Skangass' distribution terminal in Fredrikstad enables Arctic Paper's Munkedal mill in Sweden to switch to liquefied natural gas

TANANGER, Norway, Nov. 14, 2011 (Press Release) - In Munkedal, around 100 km north of Gothenburg, is one of the most beautifully situated paper mills anywhere in the world, Arctic Paper Munkedals AB. The location was chosen with care - but the paper mill was not the first settlement at the site. That honour belongs to the monks who later gave their name to the area, the paper mill, the town, the district and - finally - the brand.

Some major investments have been made over the past 20 years and today the factory is one of the most environmentally friendly in the world. As part of this, Arctic Paper has long had an objective of reducing the oil-dependency of its production processes through the use of a more environmentally friendly energy source. As a result of this, the management of Arctic Paper investigated the possibility of using natural gas, which has proven to be an ideal replacement for oil.

Thanks to Skangass' establishment of its distribution terminal for LNG in Fredrikstad, Arctic Paper now has access to a reliable natural gas supply at a competitive price. CEO Göran Lindqvist of Arctic Paper says: "LNG gives us the opportunity to reduce our environmental impact, whilst saving money at the same time".

A contributory reason why Skangass was chosen as supplier is the overall picture of a secure delivery chain combined with a high level of technical expertise and close proximity to current and future distribution terminals for LNG. Skangass, together with Arctic Paper, are now beginning the work to build a reception facility for LNG on site in Munkedal. The plan is to commission the facility towards the end of 2012. Once the facility is operational, natural gas will replace around 5,000 tonnes of oil per year.