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    Supplying Gas to the Baltics



Gasum to build LNG import terminal in Southern Finland that will connect Finland and Estonia via the Balticonnector infrastructure pipeline and the Finnish natural gas transmission network.

by: Ruben Martinez

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Natural Gas & LNG News, News By Country, , Finland, Estonia, Liquefied Natural Gas (LNG)

Supplying Gas to the Baltics

Finnish gas operator Gasum said it plans to build a liquefied natural gas (LNG) import terminal in Southern Finland and connect the infrastructure to the Baltics by a gas pipeline between Finland and Estonia.

Company’s plans foresee the infrastructure as a key element to develop the LNG industry in the region, and expect start constructing the infrastructure in 2015 and finish it by 2018-2019.

“The terminal will be located in the Gulf of Finland and will be connected to the Finnish natural gas transmission network, as well as Estonia through the ‘Balticonnector’ pipeline. It is important that Finland and Estonia come together to develop such project,” said Antero Jännes, Chief Executive of Gasum, during a conference in Tallinn.

Jännes said the Inkoo and Porvoo are the two alternatives for the location of the ‘Balticonnector’ pipeline infrastructure, and that a final investment decision was planned for late 2014.

“The project needs regulatory, cooperation and business models to be laid out. We are already taking steps for the regional interconnection. For example Kaasurpörssi, the gas trade point, that we aim to export to other Baltic countries,” added Jännez

Kaasurpörssi was established in Finland in 2001 and Gasum owns it 100%. At the moment, twenty-seven customers are using trading tool based on an Internet solution.  GET Baltic – owned by Lietuvos Dujos (66%) and Gasum (34%) – is the first experience in the Baltic region and after getting the license it will start trading in January 2013.

Gasum expects to launch the same project in Estonia by 2014 and Latvia afterwards, for it would establish the same trading system in the region and contribute to the development of the regional interconnection infrastructure.

Future plans of the Finnish gas grid operator also envisage the construction of three LNG bunker sites to supply the maritime transport and industrial sectors. From January 2015, the Baltic Sea will be part of the Emissions Control Area, which is designed to reduce harmful emissions by the shipping sector.

In 2011, Gasum, owned by Finnish utility Fortum (31%) Gazprom (25%), the Finnish government (24%) and E.ON (20%), delivered natural gas in the amount of 39.1 TWh, which corresponds to 10-11% of Finland’s energy consumption.