EC funds Balticconnector pipeline to open Finnish natural gas markets

The European Commission has decided to allocate funding to the Finnish Baltic Connector

Oy and the Estonian Elering AS for the construction of the Balticconnector gas pipeline

between the two countries. The project will be granted a total of EUR 187.5 million, which

will cover 75% of its overall cost of EUR 250 million. The Balticconnector is scheduled to be

completed by 2020.

The pipeline will enable gas transmission between the natural gas pipeline infrastructures of

Finland and Estonia. Currently, Finland imports natural gas to its own network only from

Russia. The new transmission capacity is a prerequisite for an effective opening of Finland’s

isolated natural gas markets to competition.

Balticconnector is a central link in the integration of Finland’s gas network to the EU’s

common gas markets. At the same time, investments in the development of the Baltic gas

infrastructure enable, for example, gas transmission between the Baltic region and Poland.

Thanks to these investments, the Finnish and Estonian markets will also get access to the

underground gas storage facilities in Latvia.

“This is a historic moment in Finland’s energy policy. Finland’s natural gas markets will

finally open up following the diversification of import options. Together with the jointly built

LNG terminals, the new pipeline connection will significantly strengthen the security of

energy supply,” said Minister of Economic Affairs Olli Rehn.

The Balticconnector will be funded from the European Union’s Connecting Europe Facility

(CEF). The CEF is meant to improve the security of energy supply and to integrate Member

States’ energy networks in order to step up business and to enhance competition. The

maximum amount of support granted to the Balticconnector reflects the project’s

importance for the EU.

NGS INDIA