Finnish energy company Gasum and the Estonian energy company Alexela have submitted their proposal to the European Commission and the representatives of both countries governments concerning a liquefied natural gas (LNG) import terminal to be constructed on the Gulf of Finland.
As reported earlier, it is the view of the European Commission that the solution is not eligible for funding under Projects of Common Interest (PCI) to improve Europe’s energy infrastructure. Gasum and Alexela continue negotiations on the cooperation model.
“Gasum will continue planning the construction of an import terminal in Southern Finland to be able to ensure and diversify our customers’ access to LNG in this region and in shipping, industry and heavy-duty road transport alike. Once completed, the terminal would further strengthen the supply security of natural gas,” says Gasum CEO Johanna Lamminen.
In regards to Balticconnector, the pipeline planned between Finland and Estonia, the prerequisites for the construction of the interconnector have been outlined in top-level explorations carried out by Gasum and the Estonian transmission system operator Võrguteenus and were presented to the European Commission and the representatives of both countries governments. The companies are now waiting for the final statements to the submitted proposal. The realization of Balticconnector requires advancement of other gas infrastructure projects in the Baltic countries before the interconnector pipeline can be connected to the European gas network. Both parties will apply for an EU grant for studies regarding the interconnector from the 2014 CEF Energy call for proposals.
The largest LNG player in the Nordic countries improves the delivery of gas in the Northern Baltic Sea region
Gasum’s February acquisition of Skangass unifies the Finnish, Norwegian and Swedish markets geographically, enabling the delivery of competitive LNG throughout the region. The LNG terminal to be constructed in Pori, Finland will make it possible to supply LNG for shipping and local industrial needs as early as in 2016. Once completed, the Pori LNG import terminal will be capable of serving the entire western coast of Finland from Hanko to Kokkola. Skangass has not made a decision to invest in the import terminal construction project, but has begun earthworks to speed up the commencement of construction work proper on the terminal once the investment decision is made. Skangass has applied to the Ministry of the Employment and the Economy for investment aid for the LNG terminal and the application has progressed to a proposal for a decision on aid.
Gasum is also a shareholder in Manga LNG Oy, which intends to construct an LNG import terminal in Röyttä, Tornio. The proposed terminal will be able to serve shipping and local industrial customers in the north across national borders.
Press Release, June 19, 2014; Image: Gasum