New Company looks into the market for natural gas in central Sweden

New Company looks into the market for natural gas in central Sweden Birka Energi AB will, together with its 50% owner Fortum, form a new company to research the market for natural gas in Stockholm, Mälardalen and Bergslagen. The new company, Svensk Naturgas AB, will have as its task to examine the possibility of buying in, transporting and selling natural gas for electricity and heating production as well as for industrial use. - Natural gas is one of the world's most important sources of energy but it has so far played a minor role in large areas of Sweden, says Tom Främling, Managing Director of Svensk Naturgas AB. The climate issue represents a serious environmental threat and we see natural gas replacing large quantities of oil and coal within the Swedish energy system. The customers should be offered the option of choosing between the different energy alternatives. During the transition to a sustainable energy system, fossil fuels will still have to be used and natural gas is the best of these fuels. Furnaces used for district heating production, in industrial processes and in large properties represent the most significant environmental potential for transition to natural gas. In addition natural gas can be used as public transport fuel (as is already the case in Malmö and Göteborg). According to calculations, 500,000 tons of oil and 250,000 tons of coal could be replaced by natural gas in Stockholm, Mälardalen and Bergslagen. This would mean a significant drop in both carbon dioxide sulphur and nitrogen oxide emissions. Furthermore, natural gas does not cause any emissions of heavy metal, aromatic hydrocarbon or dust, something which compared to most other types of energy makes it favourable to the local environment. - In many ways, natural gas has turned out to be a better fuel than oil or coal, says Tom Främling. Natural gas allows considerably higher levels of plant efficiency; it is also clean and gives off no soot. This is confirmed by very satisfied customers. Today natural gas produces approximately two per cent of Sweden's total energy consumption. In the south-west, it covers approximately 20% of the total energy supply. In Skåne and Halland alone, 8000 private houses are heated by natural gas. The total number of natural gas customers in Sweden is approximately 55,000. The market study now being initiated by Svensk Naturgas AB is due to be completed during year 2000. Subsequently a decision will be made regarding possible further measures. Svensk Naturgas AB is based in Stockholm. For further information contact: Tom Främling, President, Svensk Naturgas AB, tel +46 8 440 3733, +46 70 938 3288 Merril Boman, Vice President Communications, Birka Energi AB, tel. +46 8 671 7951, +46 70 590 7975 ------------------------------------------------------------ Please visit http://www.bit.se for further information The following files are available for download: http://www.bit.se/bitonline/1999/12/01/19991201BIT00380/bit0001.doc http://www.bit.se/bitonline/1999/12/01/19991201BIT00380/bit0002.pdf