Balticconnector: Baltic Seabed Exploration Works Start Amid Disputes
Baltic Seabed studies in Estonian territorial waters have begun for the Balticconnector, an 80-kilometer undersea gas pipeline between Estonia and Finland planned by Finnish gas company Gasum and Estonian gas distribution grid EG Vorguteenus.
The works precede the environmental impact evaluation (EIE) that will be started once the necessary sea-bottom data is collected.
Amid the dispute whether the Estonian end of the pipeline should come on shore somewhere near Paldiski, the measurements are expected to optimize the location and secure the safe installation of the pipeline.
The $152 million 2.4 bcm/year Balticconnector would link natural gas grids of Finland and the Baltic States, first creating an alternative gas supply source for Estonians.
The plans are in line with Gasum’s plans to build an LNG terminal in Inkoo Joddböle.
Despite the understanding that such a project is necessary to increase Estonia’s energy security and independence, the Estonian Government is not settled whether the Estonian and Finnish companies controlled by monopoly gas supplier Gazprom should be entrusted with the implementation of the project.
In addition, the Estonian Government disagrees where the Estonian end of the interconnector should be.
The Estonian Economy and Communications Ministry has recently stated Estonia is “not sure” whether the end of the pipeline should come onshore somewhere near Paldiski, or whether the pipeline would even be built.
The ministry adviser, Thor Sten Vertmann, says that “at the moment” the government is still mulling whether the pipeline will outweigh the risks, and, if given a green light, where it would be built.
“I think we are at least 1-2 years away from that decision,” the adviser said.
He insisted the choice of the route of Balticconnector will not affect the location of a planned liquefied natural gas terminal in Estonia.
The Balticconnector investment decision is to be made by the end of 2014 and, if approved, the pipeline should be launched by autumn of 2017, said Gasum’s deputy president Ari Suomilammi.