Estonia, Finland Move Closer to Gas Agreement

Helsinki and Tallinn moved closer to an agreement on gas facilities in the Gulf of Finland, with Estonia’s Alexela and Finland’s Gasum reporting progresses in the negotiations for a LNG terminal. 

According to a note released by Gasum on Thursday, he negotiations are expected to come to a conclusion in early June, when the two countries will present their solution to the European Commission for a financial support. The two parties intend to have their project listed among the Projects of Common Interest (PCI).

They aim at starting operations during the summer, with some European support also for the first phase of the project.  

According to the second Gas Regional Investment Plan (GRIP) of the Baltic Energy Market Interconnection Plan (BEMIP) region released on Monday, the 15 European Commission’s projects in the BEMIP region could ‘significantly change the picture of the gas markets in the region.’ 

Earlier this year, the two countries agreed on a USD$690.6 million plan to build two separate LNG terminals - one in Finland and the other in Estonia. Helskini and Tallinn also signed a letter of intent concerning construction of the Balticconnector, a USD$130 million natural gas pipeline that will connect the two states. 

In accordance to the agreement, the technical specifications and peculiarities as well as the economic plan of the strategic project must be submitted to the European Commission by the end of May.