Finland and Estonia Sign Historic Gas Pipeline Deal

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Written by Martin Lynch, European News Editor for Industrial Info (Galway, Ireland)--A deal to build the first gas interconnector between Finland and Estonia has been signed, which will help end the complete reliance of Finland on Russian gas imports.

The Balticconnector will enable the transport of 7.2 million cubic meters of gas per day in both directions and is expected to cost 187 million euro ($204 million) to construct. The deal was signed in the presence of the president of the European Commission (EC), Jean-Claude Juncker by the prime minister of Estonia, Taavi Rõivas, and the prime minister of Finland, Juha Sipilä.

Finland relies entirely on Russia for its gas. The Balticconnector will end the long-lasting gas isolation of Finland by connecting it to the Baltic gas infrastructures, such as Latvia's underground gas storage and the Klaipeda liquefied natural gas (LNG) terminal. The pipeline will consist of three sections: 22 kilometres (km) on Finnish soil, 80 km offshore and 50 km in Estonia. The pipeline also forms a key part of a wider European Union (EU) drive to reduce the region's reliance on Russian gas. Part of its Energy Union strategy is committed to building missing energy infrastructure links that will ensure that every Member State has access to at least three different sources of gas.

"Today's signature shows that the European Union delivers and unites," said EC President Juncker. "It is the result of close cooperation and a proof of true European solidarity. We are doing more than linking gas systems of two countries. We are bringing people and Member States in the region closer together by building a pipeline that unites European countries. As part of the Energy Union, we are building missing energy links, uniting markets, improving security of supply and ending the energy isolation of Member States."

Prime Minister of Estonia Taavi Rõivas commented: "Balticconnector signifies a key development for Nordic-Baltic energy market integration, for the region's security and diversity of supply and for consumer benefit. Regional co-operation and the EU's contribution allows for a change from entirely closed to one of the most diversified and open regional energy markets in the Union with further prospects in upcoming years."

Prime Minister of Finland Juha Sipilä added: "Balticconnector is an important milestone in helping to complete EU-wide energy market and improving the security of supply in the Baltic Sea region."

Last month, Industrial Info reported that Finland had officially opened its first liquefied natural gas (LNG) terminal at the oil and chemical harbour Tahkoluoto in the port of Pori. It has a capacity of 30,000 cubic metres and is designed to supply LNG to industrial, maritime and heavy-duty road transport customers outside the gas pipeline network. For additional information, see September 16, 2016, article--Finland Opens First LNG Terminal.

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