Balticconnector Gasline Work Starts

Construction of the €300mn ($360mn) Balticconnector gas pipeline has started, Finnish state-owned operator Balticconnector said June 8. Balticconnector will be a 153-km bidirectional pipe, of which 77 km will be subsea, linking Inga in Finland and Paldiski in Estonia with 7.2mn m³/d transmission capacity. The grid operators of the two countries will build it. The final investment decision was taken in October 18, 2016 and it is planned to start in 2020. The construction of the Inkoo compressor station is planned to end autumn 2019.

European Union funds will provide 69% (or €206mn) of the cost, a higher proportion than most infrastructure projects have received. It signals the importance the EU attaches to improving both states' security and diversification of supply as both are supplied with only Russian gas. The project creates a framework for market opening and growth and enables the use of alternative sources, such as LNG and biogas.

“Gas has a significant role in the European energy policy, and it is the first step in reducing emissions when abandoning the use of coal. Hereby, we have once again taken a step towards a carbon-neutral society as part of the common European gas market,” Baltic Connector CEO Herkko Plit said.