Finnish gas transmission network operator Gasum has decided to abandon its plans to develop Finngulf LNG, a regional LNG terminal in southern Finland, and the Balticconnector gas pipeline interconnection with Estonia. The group has conducted thorough feasibility studies stating that the projects are not commercially viable and that there is not sufficient demand for them in the Finnish market. Gasum will hand over the responsibility for the regional LNG terminal to a project coordinator designated by Estonia.
For many years, Finland and Estonia discussed the location of a joint LNG import terminal (2.5 bcm/year by 2015) in Inkoo (Finland) or Paldiski (Estonia), which would supply gas to the neighbouring country through the Balticconnector gas pipeline. In March 2014 the two countries finally reached an agreement, after having missed deadlines to apply for EU financing (up to 40% of a regional terminal): two small-size LNG terminals would be built on either side of the Gulf of Finland and connected by the Balticconnector by 2019. As the two-terminals are not eligible for European subsidies, the two countries resumed discussions and finally agreed on the development of a regional LNG terminal in November 2014.
Gasum will continue the development of small-scale LNG terminals in Pori and in Tornio (Finland); the LNG terminal projects will serve the growing needs of the market outside the gas pipeline network in industry, shipping and heavy-duty road transport.
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