Finland and Estonia have agreed to build two liquefied natural gas (LNG) terminals as part of the Balticconnector gas pipeline project, the Finnish government said in a release.
The plans include the construction of a large-scale LNG terminal in Finland, which would then provide liquefied natural gas to users in the region. The Balticconnector pipeline would link gas markets in Finland and Estonia. A small-scale LNG terminal would also be built in Estonia for distribution of gas and security of supply.
According to the plan, the development of gas infrastructure in the Baltic region would enable Finland and the Baltic states to access the underground gas storage in Latvia, too.
“There is no point in building the pipeline unless we also put up a regional terminal. The projects are a large investment and we need all of its components. The whole undertaking must also be economically feasible as, ultimately, the investment costs will be transferred to the price paid by the end users,” said Finland’s Minister of Economic Affairs Jan Vapaavuori.
Efforts are being made to secure substantial EU funding for the projects as the level of such funding will considerably affect their viability.
Finland and Estonia will implement the LNG projects as soon as it is technically and economically feasible to do so. The aim is to have the Balticconnector pipeline up and running in 2019. The terminal may also be built in Estonia in case that its implementation has not proceeded sufficiently by the end of 2016.
Press Release; Image: Gasum