Finnish gas operator, Gasum, has renounced its plans of constructing a regional LNG terminal in Southern Finland and the Balticconnector offshore pipeline between Finland and Estonia.
Namely, on the basis of the studies Gasum has conducted, the Finngulf and Balticconnector projects are not regarded as commercially viable and there is not sufficient demand for them in the Finnish market. Therefore Gasum will scrap the implementation of both projects.
The Balticconnector pipeline was aimed to interconnect the Estonian and Finnish gas transmission networks.
According to Gasum, 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.
Furthermore, Gasum believes that in Southern Finland, in the area covered by the gas pipeline network, investments of this scale would further weaken the competitiveness of gas.
“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,” says Gasum CEO Johanna Lamminen.