Gasum Bins Baltic Projects
Finnish energy company Gasum has decided to discontinue projects to build a regional liquefied natural gas (LNG) terminal in southern Finland (Finngulf), and the Balticconnector offshore pipeline between Finland and Estonia due to insufficient commercial viability and lack of demand in the Finnish market, the company said in a statement.
Gasum says that the Finnish gas market and its future outlook have changed substantially since 2008 when plans for the projects were initiated. The competitiveness of gas has deteriorated and gas consumption has decreased, and the company believes that investments of this scale would further weaken the position of the commodity.
The company plans to continue the active development of the Nordic gas market, saying that there is demand for LNG in Finland, particularly among users outside the gas network and in transport, with LNG providing a competitive alternative to oil-based fuels.
The Gasum subsidiary Skangas is constructing an LNG terminal in Pori, Finland, and Skangas is also a co-owner of the LNG terminal under construction in Tornio, Finland.
The Pori and Tornio terminal projects will serve the growing needs of the market outside the gas pipeline network in industry, shipping and heavy-duty road transport.
”Gasum is investing constantly in the development of the Finnish gas infrastructure. Our key objectives are to ensure our customers’ access to clean and competitive fuels and at the same time develop the Finnish biogas market and Nordic LNG market,” said Gasum CEO Johanna Lamminen.
