Preem accounts for about 80% of Swedish fuel production capacity, providing roughly half of all liquid fuel used in Sweden. The company also produces heating and lubricating oils. Around two-thirds of the fuel production is sold to international customers, mainly in Northern Europe. Preem’s production takes place at two refineries on the west coast of Sweden, to the north of Helsingborg in Gothenburg and Lysekil. Both are among Europe's most modern refineries. Together, they have the possibility of producing up to 18mn m3 of fuel annually. The company aims to achieve a climate-neutral value chain with net zero emissions by 2035.

Historically, the terminal had served as a distribution point for fossil fuels to resellers and customers since the late-1960s, forming an integral part of the energy supply chain. However, with a gradual decline in gasoline and diesel volumes, Preem recognised the need for about 340,000 m3 of additional storage capacity for renewable feedstock.

Securing sustainable storage space was essential to prevent the need for offloading volumes, emphasising the strategic importance of expanding or repurposing existing infrastructure.