Go-ahead for underground crude oil storage

The Port of Gothenburg is set to begin construction of a facility for crude oil storage in one of the underground caverns at the port, with completion within 24 months. It is estimated that the investment will increase current crude oil volumes by up to 60 per cent.

Together with the storage company Scandinavian Tank Storage, the Port of Gothenburg is aiming to offer crude oil storage in one of the underground caverns at the Tor Harbour. Previously used for contingency stockpiling of oil products, the cavern has been out of use for a long time.

"It is extremely satisfying that we will soon be able to offer this service to our customers. There are few ports that offer crude oil transit, which makes such an investment even more interesting," says Magnus Kårestedt, Port of Gothenburg chief executive.

Oil transit would mean, among other things, that vessels carrying crude oil, particularly from Russia, berth at one of the two quays at the Tor Harbour. The oil would then be discharged across the quay and stored temporarily in the cavern before being transported later, using larger vessels, to markets such as Asia and the USA. The Port of Gothenburg is one of the few ports in Scandinavia with the capacity to offer a deepwater harbour for crude oil and interim storage for transshipment to larger tonnage.

At present, approximately 9 million tonnes of crude oil are handled each year at the Tor Harbour. Once the new facility is brought into use the harbour could see an increase of 20-60 per cent.

"Storage of crude oil in an underground cavern and the opportunity for transshipment to larger tonnage at the quayside at the Tor Harbour is a secure and environmentally correct alternative to lightering out at sea. When handling crude oil, the resulting gases will be recycled in a new, modern and effective gas recycling facility," states Claes Jacobsson, CEO of Scandinavian Tank Storage.

To create storage capacity for crude oil, the Port of Gothenburg is developing modern loading and discharge equipment for use at the Tor Harbour. The equipment that will be installed in the cavern will include new pumps, pipelines, electricity supply and equipment to deal with gases. The environmental aspects are of vital importance and adaptations are being made to ensure handling is as environmentally friendly as possible.

The facility will be ready for use within 24 months.


For further information, please contact Eva Jonasson, Media Relations Officer, Port of Gothenburg, tel. +46 31 731 22 45.