Finland and Estonia have reached an agreement on a road map for creating a Liquefied Natural Gas (LNG) terminal between the two countries.
The Finnish Prime Minister Alexander Stubb and Estonian Prime Minister Taavi Rõivas said the two countries will implement the LNG projects when it is both “technically and economically feasible” to do so.
The plan includes the construction of a large-scale LNG terminal in Finland, which would then provide liquefied natural gas to users in the region at competitive prices.
Prime Minister Alexander Stubb said: “I am very satisfied that we have reached agreement.
“With the implementation of the planned measures, Finland will become integrated into the European gas network and be able to improve the country’s gas-based energy security.”
The Balticonnector pipeline would link the gas markets in both countries.
A small-scale LNG terminal would also be built in Estonia for distribution of gas and security of supply.
The development of gas infrastructure in the Baltic region would enable Finland and the Baltic states to access the underground gas storage in Latvia.
It’s thought the Balticonnector pipeline would be operational 2019.
Minister of Economic Affairs Jan Vapaavuori said:”There is no point in building the pipeline unless we also put up a regional terminal.
“The projects are a large investment and we need all of its components.
“The whole undertaking must also be economically feasible as, ultimately, the investment costs will be transferred to the price paid by the end users.”
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