E.ON, Swedegas and Port of Åhus plan to build gas network in Skåne, Sweden

German company E.ON and Sweden-based Swedegas and the Port of Åhus have signed a letter of intent to build a gas network in north-east of the province of Skåne after enquiring the preconditions using the Port of Åhus as a starting point.

Customers are set to get access to biogas with a new gas network in north-east Skåne.

Under the joint venture, a new storage facility would be established for liquefied natural gas (LNG) at the Port of Åhus in addition to an isolated regional gas network for biogas and natural gas.

E.ON Gas CEO Tina Helin said: "E.ON is Sweden’s largest gas distributor and we own and manage the network for distributing gas to end-customers.

"With a regional gas network we can create a potential for renewable transport solutions and at the same time reach customers who would otherwise not be able to connect to a gas network."

Port of Åhus CEO Fredrik Åsare said: "The Port of Åhus has an important role to play when it comes to increasing the competitiveness of the companies that are established in the port area.

"A gas network and an associated LNG storage facility would certainly have such an effect."

The Swedish gas grid is owned, run and maintained by Swedegas.

The latest project is expected to create new opportunities for biogas and LNG within smart energy systems and allows biogas producers to reach a wider market.

A joint enquiry, which is set to begin for the establishment of a gas distribution network, is due to be completed in December.

The majority of biogas in Sweden is produced at anaerobic digestion plants where microorganisms break down the substrate from wastewater facilities or energy crops to form a biogas.

This raw gas consists of about 60% methane and 40% carbon dioxide.