EMEA News
Finland and Estonia to Build Connected LNG Terminals
Finland and Estonia have signed an agreement to build two liquefied natural gas (LNG) terminals which will be connected by a gas pipeline across the Gulf of Finland, the Finish government announced.
"I am very satisfied that we have reached agreement," said Prime Minister Alexander Stubb.
"With the implementation of the planned measures, Finland will become integrated into the European gas network and be able to improve the country's gas-based energy security."
Current plans call for a large-scale terminal to be built in Finland, with a smaller-scale facility in Estonia to help with distribution and security of supply.
The project, which was halted a month ago after disagreements on how to shareEU financial assistance, will also help the two countries to rely less heavily on Russian gas as the deal also opens up access to Latvia's underground gas supply, according to Reuters.
Efforts are currently being made to secure "substantial" funding from the EU, with that amount having a "considerable" affect on the viability of the project, according to the Finnish government.
The total project is expected to cost around €500 million ($626.7 million), with the two governments expecting the EU to cover three quarters of the pipeline's €200 million ($249 million) price tag.
"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 Minister of Economic Affairs Jan Vapaavuori.
The governments also said that if the project hadn't been "sufficiently" implemented by the end 2016, the larger-scale terminal could also be built in Estonia.
Finland said earlier this year that it hoped to invest in LNG in order to cut down on fuel oil use.
