Finland grants financial support for three LNG terminals

Finland grants financial support for three LNG terminals

The Ministry of Employment and the Economy of Finland said that it has committed a total of EUR 65.2 million in energy subsidies for three liquefied natural gas (LNG) terminals.

With the help of this support, Manga LNG Oy, Skangass Oy, and Oy Aga Ab will build LNG terminals in Tornio, Pori and Rauma respectively. These new terminals will help facilitate a move to significantly reduce the industrial use of fuel oil and liquid petroleum gas (LPG) in Finland.

“The decrees to go ahead with these three operations will see more than EUR 200 million being invested into LNG terminals. This will then instigate the development of a network of terminals along the Finnish coastline,” commented Minister of Economic Affairs Jan Vapaavuori after signing the decrees.

LNG offers an environmentally-friendly and carbon-free alternative fuel source for the shipping industry. It also enables us to create alternative procurement streams for industries that use gas. According to estimates, the market potential for the use of LNG by the shipping and other industries is particularly significant in the Satakunta region. Furthermore, a terminal in the Bay of Bothnia would make possible the use of LNG in all the harbours located in the Northern part of the Bay of Bothnia.

Manga LNG Oy has been awarded 33,155,400 euros for the construction of a terminal at Röyttä Harbour in Tornio, Northern Finland. Due to be completed in 2017, the terminal will have the LNG storage capacity of 50,000 cubic metres. Manga LNG Oy operates as a joint venture by Outokumpu Oyj, SSAB, Skangass Oy and EPV Energia Oy.

Skangass Oy has secured 23,441,500 euros for the construction of a terminal at Tahkoluoto Harbour in the Port of Pori. The Pori terminal will have an LNG storage capacity of 30,000 cubic metres. It is set to be up and running in autumn 2016. Skangass Oy is a subsidiary of the Norwegian company, Skangass AS. Gasum Oy has a 51% share holding in Skangass AS, with the remaining 49% owned by the Norwegian company Lyse Energi AS.

Oy Aga Ab won d 8,619,200 euros for the construction of a terminal in the Port of Rauma. The combined storage capacity of the Rauma terminal’s eight LNG tanks will be 10,000 cubic metres. Work on the terminal is set for completion in early 2017. Oy Aga Ab is a subsidiary of the Swedish company Aga AB, which in turn is owned by Linde Gas Holding AB. Linde Gas Holding AB is owned by the German company Linde AG.

The combined maximum operating capacity of the three terminals will be 450,000 tonnes, which equates to more than 6 terrawatt-hours a year. The three new terminals will also reduce annual CO2 emissions by approximately 370,000 tonnes and carbon emissions by 1,870 tonnes.

A supplementary state budget was set aside to be invested as support for LNG terminals in accordance with the decision made during Government’s spring 2013 session on spending limits. This support is valued at EUR 123 million. In addition to the three projects currently under way, the Ministry of Employment and the Economy is also handling applications for investment support from Haminan Energia Oy, LNG Finland ry, and Containerships Ltd Oy. A comprehensive decree on these three applications is intended to be issued in 2014.

The large-scale regional LNG terminal planned for construction in Inkoo, Southern Finland, does not fall under the remit of the national aid programme. It is hoped that funding for this project can be secured from the European Commission’s list of Projects of Common Interest (PCI). The projects on this list are intended to develop Europe-wide gas networks and eliminate regional isolation.

 

Press Release, September 18, 2014; Image: Gasum

Share this article

Follow LNG World News

5 thoughts on “Finland grants financial support for three LNG terminals”

  1. Pingback: william
  2. Pingback: David
  3. Pingback: Arnold

Comments are closed.

Events>

<< Apr 2020 >>
MTWTFSS
30 31 1 2 3 4 5
6 7 8 9 10 11 12
13 14 15 16 17 18 19
20 21 22 23 24 25 26
27 28 29 30 1 2 3

Flame 2020

Flame is Europe’s largest and most influential meeting place for the global gas industry.

read more >

4th PNG Petroleum & Energy Summit

The CWC Group, in partnership with Kumul Petroleum Holdings Ltd.

read more >

FSRU World Congress 2020

FSRU World Congress 2020 will therefore focus on further Commercialising FSRUs through LNG-to-Power…

read more >

CWC World LNG & Gas Series: 12th Asia Pacific Summit

The 2020 Summit will offer an unrivaled programme covering relevant and significant discussion topics…

read more >