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Bunker Holding has confirmed that it is to build a liquefied natural gas (LNG) production facility at the Port of Frederikshavn, Denmark.

With subsidiary Unioil Supply A/S as its commercial arm, the LNG facility will produce LNG for the maritime sectors in Denmark and Sweden.

The establishment of the facility in Frederikshavn will make it possible for Bunker Holding to use the country's natural gas grid to produce LNG locally, rather than importing the gas from an LNG terminal outside Denmark. This is designed to ensure the fast, efficient and safe delivery of gas to customers.

Approximately 100,000 ships travel through the straits near Skagen every year, making Frederikshavn a strategic location for the new LNG project.

Mikkel Seedorff Sorensen, Managing Director of the Port of Frederikshavn, said in a statement today: "It is very pleasing that we have succeeded in attracting a company like Bunker Holding to Frederikshavn and that the Port of Frederikshavn has been chosen as the location for one of the first LNG investments in Europe. The project relating to LNG production fits perfectly into our strategy where environmental considerations play a big part. We are convinced that this innovative project will help to put Frederikshavn on the map. For a long time now, being able to offer LNG has been an area within which we have wanted to help generate development."

The production plant is to be built by Danish company Kosan Crisplant A/S - a leading supplier of equipment for infrastructure and facilities for the production and handling of gas.

"With 65 years in the gas sector, and after having implemented almost 3,000 gas installations all over the world, we are pleased to be involved in this exciting project in Denmark. Producing LNG or LBG from the natural gas grid is a new area of growth for us, and being allowed to organise a project with the strongest players in their respective fields is a dream situation for an engineering firm like ours. We look forward to making a first-class project which resonates all over the world and thus lays the groundwork for a unique reference project to our international customers and puts North Jutland and Frederikshavn on the world map," remarked Bo Larsen, Commercial Director, Kosan Crisplant.

Unioil Supply A/S - Bunker Holding's subsidiary in Aalborg, is to handle the commercial aspects of the LNG project. The company has already arranged LNG deliveries in Denmark.

"We expect a rising demand for LNG in the years ahead, and we have been good at finding the perfect business parters. Our extremely well-organised set-up means that we are ready to cover all of Denmark and Sweden," explained Peter Zachariassen, Head of Physical, Bunker Holding.

"LNG is part of the future, and it is important for us to be at the cutting edge of developments and to be able to offer our customers diversification in our product portfolio. Thus, several shipping companies have already taken great interest in our project which helps to emphasise Denmark's focus on green energy," Zachariassen added.

Jens P. Buchhave, Managing Director of Terntank Rederi A/S - a Skagen-based shipping company that has already invested in LNG-powered ships, said: "Terntank takes a very positive approach to this initiative in the Port of Frederikshavn. For quite some time now, we have been calling for some of the major bunker suppliers to take the initiative to provide LNG, and this new set-up fits perfectly into our strategy where we have already placed orders for four ships that will be fuelled by LNG. We look forward to following the development of this exciting project."