Eastern European Markets

April the 2nd, 2012

Gasum Oy: Liquefied natural gas (LNG) import terminal
for Southern Finland planned by Gasum

Gasum Oy is planning the imports of liquefied natural gas (LNG). The company is exploring the feasibility of constructing a large import terminal in Southern Finland, either in Jöddböle, Ingå, or Tolkkinen, Porvoo. If completed, the terminal investment is anticipated to total several hundreds of millions of euros. The environmental impact assessment (EIA) procedure covering both potential sites begins in April. The terminal would enable the imports of an amount of LNG corresponding to 25-50% of Finland's current gas consumption.

According to Gasum CEO Antero Jännes , the LNG project is justified by the positive LNG price development seen in the past decades, with the underlying reasons for this being the increased LNG production capacity and the utilisation of new gas resources. This has made LNG a competitive alternative to gas imported via the pipeline network.

- The LNG import terminal would connect Finland with the international gas market. A total of 15% of the gas used by EU countries is already imported in the liquefied form. LNG is a serious alternative, and Gasum wants to explore the opportunity to import it to Finland.

- LNG imports will diversify access to gas and increase flexibility in sourcing. This would provide Finnish gas consumers with continued access to gas at a competitive price that stands comparison with competitor countries. LNG also offers a flexible way to ensure the availability of energy during the winter peak periods of power consumption, says Jännes.

The Gasum CEO also points out that LNG offers a cost-efficient way to ensure the security of natural gas supply.

With LNG imported, there will be a large enough volume of gas in storage to replace oil-based reserve fuel solutions in the gas network.

Up to 50% of current consumption can be covered by LNG imports

Gasum is planning the construction of an LNG terminal in Southern Finland. The terminal will be connected to the gas network and located either at Jöddböle, Ingå, or Tolkkinen, Porvoo. The terminal is planned to have capacity for an annual total import volume of 10-20 TWh of natural gas, corresponding to 25-50% of Finland's current annual gas consumption.

The LNG will be sourced from the world market and shipped to the Finnish terminal on special-purpose vessels. At the terminal the LNG will be regasified and fed into the natural gas pipeline network. LNG can also be delivered from the terminal in liquid form on barges or in tank vessels to new uses, including as shipping fuel or at industrial facilities. LNG is a new, clean fuel alternative for maritime transport that helps reduce maritime emissions in the Baltic Sea.

The LNG terminal planned by Gasum will involve an investment amounting to ¤200-400 million depending on the size and implementation method. Any further decisions will be made once the project's environmental impact assessment is completed. The company aims to achieve the completion of the LNG terminal for full import, storage and network injection capacity by the end of 2018. The terminal may also be constructed and commissioned in phases, in which case LNG imports for users such as shipping companies could already begin at the end of 2015.

Environmental impact assessment (EIA) completed next year

The EIA procedure launched in April will assess the project's environmental impacts before any further decisions will be made. An essential element in the EIA procedure is a dialogue with local residents, non-governmental organisations and other stakeholders.

The EIA programme for the project is available for viewing from 10 April to 25 May. The programme can be downloaded in Finnish from sources including the Uusimaa Centre for Economic Development, Transport and the Environment. Public events will be organised by the coordinating authority in Porvoo on 18 April and in Ingå on 19 April.

For more information
Ari Suomilammi, Vice President Mobile +358 400 653 351
Pekka Hytinkoski, Project Manager Mobile +358 50 458 3491
Contact person for the media:
Jukka Isokoski, Expert Mobile +358 40 736 8861

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