Sweden Oil and Gas Market Overview
Sweden’s oil and gas market is characterized by its high level of energy diversification and a steadily declining reliance on fossil fuels. The country imports nearly all its crude oil and natural gas, as it has no significant domestic reserves. Nevertheless, oil remains important for transportation and certain industrial applications, while natural gas plays a minor role in Sweden’s overall energy mix. The Swedish government has consistently emphasized sustainability and decarbonization, driving a national shift toward renewables and energy efficiency. Oil consumption has steadily declined over the past decade due to the adoption of electric vehicles, increased use of biofuels, and stricter environmental policies. Natural gas, supplied mainly via imports through pipelines and liquefied natural gas (LNG) shipments, is primarily used in industrial processes and district heating. Sweden’s long-term strategy aims to achieve net-zero emissions by 2045, which has further limited growth prospects for the traditional oil and gas sector while creating opportunities in cleaner energy alternatives and synthetic fuels.
The upstream segment of Sweden’s oil and gas market is negligible, with no active domestic exploration or production activity due to the absence of proven reserves and the country’s stringent environmental regulations. Sweden relies entirely on imports to meet its oil and gas needs, making its midstream infrastructure crucial. This includes ports, pipelines, and LNG terminals for handling refined petroleum products and natural gas. Key facilities such as the Nynäshamn LNG terminal and Gothenburg port play a central role in maintaining steady fuel supply chains. In the downstream segment, Sweden operates several oil refineries, with Preem AB being the dominant player. Preem’s facilities are among the most modern in Europe and have been transitioning toward renewable fuel production, including hydrogenated vegetable oil (HVO) and synthetic diesel. The country’s extensive distribution network supports retail and industrial demand, although overall fossil fuel consumption is in long-term decline. Sweden’s oil and gas infrastructure is therefore focused not on expansion, but on efficiency, emissions reduction, and integration with sustainable energy systems.
Sweden Oil and Gas Market Latest Developments
In November 2024, Gasum partnered with Wärtsilä to develop a new bio-LNG production facility in southern Sweden with a target capacity of 25 tons per day, aimed at supporting Sweden’s transition away from fossil-based natural gas.In June 2025, Preem officially inaugurated its upgraded Synsat unit at the Lysekil refinery, tripling renewable diesel output to approximately 900,000 cubic meters annually, and significantly reducing fossil input requirements.
In late 2024, Preem began the reconstruction of its IsoCracker unit, with the goal of producing up to 1.2 million cubic meters per year of renewable fuels such as HVO and sustainable aviation fuel.
In March 2025, Varo Energy announced the acquisition of Preem Holding, including the Gothenburg and Lysekil refineries. The deal, backed by Vitol and Carlyle, is expected to close pending regulatory approval.
In early 2025, Preem reported that its entire logistics fleet in Sweden had been converted to HVO100 (hydrotreated vegetable oil), achieving an annual emissions reduction of over 3,500 metric tons of CO₂ equivalents.
Key Takeaways:
The launch of a new bio-LNG facility demonstrates Sweden’s push to build out renewable gas infrastructure, targeting the industrial and transportation sectors with low-emission alternatives.
The significant expansion of renewable diesel capacity at Lysekil indicates Preem’s commitment to phasing out fossil-based fuels and aligns with Sweden’s national emissions reduction targets.
The redevelopment of the IsoCracker unit enables large-scale production of advanced biofuels, positioning Preem as a regional leader in low-carbon fuel manufacturing.
The acquisition of Preem by Varo Energy reflects a strategic realignment in Sweden’s downstream oil sector, bringing in expertise and capital to accelerate the energy transition.
The shift to 100% HVO100 across Preem’s domestic logistics fleet is a major step in decarbonizing operational emissions, serving as a model for the wider sector.
Preem’s two refineries currently supply a substantial portion of Sweden’s refined fuel needs, and their conversion to renewable fuel production supports both national and Nordic fuel security.
Sweden's policy of increasing biofuel blending mandates is driving up demand for HVO and other renewable fuels, providing long-term market stability for local producers.
The integration of renewable energy across Sweden’s fuel supply chain from production to logistics reflects a whole-of-market commitment to carbon neutrality.
Preem is actively pursuing carbon capture and storage (CCS) technologies as part of its roadmap to become carbon neutral by 2035, complementing its biofuel investments.
At the EU level, Sweden continues to support regulatory actions that reduce dependence on Russian energy imports, reinforcing national supply security and geopolitical alignment with the European energy strategy.
Sweden Oil and Gas Market Report Scope
The "Sweden Oil and Gas Strategic Analysis and Outlook to 2032" is an all-encompassing report that delivers a full-spectrum evaluation of the nation’s oil and gas value chain—from exploration and production fields, refinery and LNG plant operations, to midstream pipelines and storage infrastructure in Sweden. Leveraging robust methodologies and proprietary databases, the study provides detailed asset-level data, historic and forecasted supply-demand trends (2015–2032), and a clear understanding of how recent developments, government policies, and market dynamics shape the sector. The Sweden Oil and Gas report equips industry stakeholders with actionable insights for investment, benchmarking, and strategic planning by profiling operational assets, new projects, and the competitive landscape across upstream, midstream, and downstream segments.
Comprehensive market analytics are complemented by SWOT and investment opportunity analysis, highlighting growth drivers, operational risks, sector-specific challenges, and capital requirements. The study evaluates key companies’ strategies, performance, and market positions, providing an integrated view of where opportunities and bottlenecks exist. The scope extends to Sweden field-wise production, refinery-wise capacity, LNG terminal operations (including liquefaction and regasification units), and product flows through pipelines and storage. The research not only answers core market questions but also uncovers the evolving dynamics that will influence the future trajectory of Sweden country’s oil and gas industry.
- Sweden Asset-by-asset data covers all existing and upcoming oil and gas fields, refineries, LNG terminals, pipelines, and storage facilities, providing a granular view of national infrastructure.
- Historic and projected supply-demand analysis for crude oil, natural gas, and key refined products (gasoline, diesel, LPG, fuel oil, etc.) from 2015 to 2032.
- Recent developments, regulatory changes, and major project announcements are analyzed for their impact on market fundamentals and investment climate.
- Segmented insights into upstream (exploration and production), midstream (pipelines, LNG, storage), and downstream (refining, distribution) operations.
- Comprehensive overview of LNG sector including liquefaction and regasification terminals, contracted versus available capacity, and future outlook.
- Sweden Oil and Gas Industry SWOT analysis and sector-wise benchmarking to evaluate industry strengths, challenges, opportunities, and potential risks.
- Sweden Investment analysis detailing sector growth potential, required capital for new projects, and feasibility of ongoing and planned developments.
- Competitive landscape profiling of leading companies, with business strategies, operational performance, and market shares.
- Infrastructure benchmarking by market concentration in pipelines, refining, LNG, and storage segments, including capacity and utilization rates.
- Answers to key market questions, including evolving Sweden supply-demand dynamics, project status, leading market participants, and the future outlook for capacity, trade, and investment.
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FAQ's
The Sweden Oil and Gas report provides comprehensive intelligence from upstream to downstream—covering exploration blocks, field-level production, refinery operations, LNG terminals, and supply-demand analytics. It empowers executives and investors with actionable insights to assess risks, evaluate opportunities, and optimize Sweden market entry or expansion strategies.
Yes, the report presents detailed data and analysis for all relevant segments present in the country—whether upstream (exploration and production), midstream (LNG terminals, storage facilities, pipelines), or downstream (refineries). This sector-specific granularity ensures accurate benchmarking, planning, and forecasting tailored to the Sweden oil and gas infrastructure.
With detailed coverage of exploration opportunities, trade contracts, regulatory frameworks, and infrastructure projects, the Sweden oil and gas report serves as a critical tool for stakeholders formulating investment strategies, negotiating partnerships, or aligning with national energy policies.
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