Finngulf terminal and Balticconnector pipeline not commercially viable
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Gasum is continuing the active development of the Nordic gas market.
As Gasum has already stated earlier, implementation of the projects require them to be commercially viable. On the basis of the studies Gasum has conducted the Finngulf and Balticconnector projects are not regarded as commercially viable and there is not sufficient demand for them in the Finnish market.
Therefore Gasum will give up the implementation of both projects.
The Finnish gas market and its future outlook have changed substantially since 2008 when plans for the projects were initiated. The competitiveness of gas has deteriorated and gas consumption has decreased.
In Southern Finland in the area covered by the gas pipeline network, investments of this scale would further weaken the competitiveness of gas. The extensive studies conducted indicate that the Finngulf and Balticconnector projects are not commercially viable. Therefore Gasum will give up the implementation of both projects.
Gasum is continuing the active development of the Nordic gas market. In Finland there is demand for LNG, particularly among users outside the gas network and in transport, with LNG providing a competitive alternative to oil-based fuels.
The Gasum subsidiary Skangas is constructing an LNG terminal in Pori, Finland, and Skangas is also a co-owner of the LNG terminal under construction in Tornio, Finland. The Pori and Tornio terminal projects will serve the growing needs of the market outside the gas pipeline network in industry, shipping and heavy-duty road transport.
Additionally, the market for the biogas, which is 100% Finnish and renewable, is growing strongly and Gasum desires to be a forerunner in developing the market. ■