Thomsen wins contract to supply oil to Faroese government buildings

Thomsen has secured a contract with Landsverk, the Faroese public works authority, to supply heating oil to government buildings across the country, the company announced on Thursday.

The agreement also allows Thomsen to expand its oil delivery services to the island of Suðuroy, according to company director Tórhallur Thomsen. The firm submitted the lowest bid among three competitors.

Under the contract, Landsverk will receive oil at the listed price with an additional discount. The deal covers approximately 90 government buildings using heating oil, with an estimated annual volume of around 1.5 million litres, though demand may decline in the coming years as more properties transition to green energy sources.

Landsverk stated that Thomsen’s bid was 0.852 krona per litre cheaper than the next lowest offer. The new agreement is expected to save the government between 400,000 and 500,000 krona annually compared to the current discount arrangement.

Thomsen entered the Faroese market in November last year, competing with incumbents Magn and Effo. The company has since been supplying heating oil alongside the two established providers.