Gasum, Alexela Don’t Find Deal on LNG Terminal Compliant with European Conditions

Finland’s Gasum and Estonia’s Axela Energy did not agree on any possible LNG terminal compliant with the indications stated by the European Commission. 

‘In the studies conducted, no commercially viable collaboration model could be found for a terminal at the level of the investment aid indicated by the European Commission,’ Gasum wrote in a note released on Wednesday. 

Gasum and Alexela signed a Memorandum of Understanding in February, looking for options to develop a regional LNG terminal project.

The two Baltic companies presented their plans in June, but the European Commission did not grant an investment aid, setting some conditions for the project to be granted funds. 

”The negotiations were conducted in good spirit, but unfortunately we were unable to reach a financially viable solution with the level of EU investment aid available. To be realized, all of the presented models would have required significant EU investment aid, which was not available”, Gasum CEO Johanna Lamminen wrote.