The LNG terminal to be built at the Finnish Port of Hamina by the technology group Wärtsilä under a turnkey contract has reached financial close and received the necessary building permits.
Debt financing for the project has been concluded with Skandinaviska Enskilda Banken and Finnvera, the Finnish state-owned specialized financing company, Wärtsilä said in a statement.
The total investment is worth approximately €100 million ($117.9 million).
In addition to supplying the engineering, procurement, and construction of the terminal, Wärtsilä is also joining the project through a minority investment by Wärtsilä Development and Financial Services in Hamina LNG, the project developer.
The main shareholders in Hamina LNG are Hamina Energy and Estonian energy company Alexela.
The building permit for the LNG terminal has also been secured, Wärtsilä said, adding that in the first stage, a 30,000 cubic meter LNG storage tank will be built. Facilities are also being prepared for a second 20,000 cbm storage tank to be added at a later date. The earthwork has been completed on schedule, and the construction work has already commenced.
The LNG terminal is planned to become fully operational in 2020, Wärtsilä said.
The global demand for LNG is rapidly growing, and the related infrastructure is being developed accordingly.
“The new Hamina LNG terminal will be an important addition to the gas infrastructure as it will not only supply businesses and the shipping sector, but will also feed into Hamina Energy’s distribution gas grid and can be connected to Finland’s gas grid. We appreciate Wärtsilä’s extensive capabilities in LNG engineering, which have enabled us to move the project along on schedule,” said Markku Tommka, CEO, Hamina Energy.
Alexandre Eykerman, vice president, LNG Solutions, Wärtsilä Energy Solutions, added the Hamina project is the third LNG terminal in Finland that Wärtsilä has been contracted to build, the others being the Manga Tornio terminal and the Raahe terminal.