Project Profile
Value: Undisclosed
Location: near Inkoo (Inga), 50 kilometres southwest of Helsinki, Finland
Area: Unknown
Capacity: 10 to 20 TWh of natural gas equivalent
Length: unknown (pipeline)
Start-up Year: 2016 (full completion by 2019)
The Finnish midstream company Gasum Oy (Gasum) will build and operate the Finngulf LNG Terminal project in order to import, store liquefied natural gas (LNG) in Finland in connection with the neighboring Estonia on the Gulf of Finland in the Baltic Sea. Finland and Estonia do not have any natural gas resources but are surrounded by giant producers so that 100% of the gas consumed in these countries is currently imported from Russia. These natural gas importation from Russia to Finland and Estonia are covered by long-term contracts. In order to enforce these long term agreements, Gasum stakeholders are to date:
- Finnish State 75% is the operator through its Gasonia Oy holding and National Emergency supply Agency
- Gazprom 25% as the gas supplier.
In the perspective of Finland willing to import LNG from western countries Helsinki Authorities proposed US$650 million to Gazprom in order to acquire the 25% stake and take the entire control of Gasum. Gazprom board is due to approve the transaction. Finngulf LNG Import Terminal, the Estonia LNG Import Terminal and their inter connecting pipeline should be supported by EU financing. From the total costs of the project estimated to US$500 million capital expenditure, the interconnecting pipeline is evaluated to US$200 million out of which 75% should be covered by the EU financing as a typical cross borders project in favor the European energy policy. In this Finland – Estonia common project, Finngulf LNG project should be the main LNG Import Terminal, while Estonia LNG project should be much smaller. Then the two Baltic LNG import terminals would be connected by the Balticconnector project, a subsea pipeline across the Gulf of Finland shallow water. In Estonia the location selection of the LNG terminal is at feasibility study between Muuga Harbour and Paldiski South Harbour. In Finland, Finngulf LNG Import Terminal project should be built near Inkoo (Inga), 50 kilometres southwest of Helsinki. Finland LNG terminal should have a capacity to import 10 to 20 TWh of natural gas equivalent representing from 25% to 50% of a year consumption. Gasum is planning to build the Finngulf LNG Import Terminal project and the Balticconnector in different phases so that it could start receiving LNG carrier on early 2016 and reach the full completion by 2019.
Operators:
Gasum: Operator with 100% interest
Finnish State (through its Gasonia Oy holding and National Emergency supply Agency): 75% interest in Gasum
Gazprom: 25% interest
Contractors:
Subcontractors: