Finnish government funds new LNG terminal with 28 million euros

Finnish government funds new LNG terminal with 28 million euros

The Ministry of Employment and the Economy has granted 27,660,000 euros in investment subsidies to Haminan Energia for the construction of a terminal at the Port of HaminaKotka’s oil and gas harbor, which will sell LNG to industry and to maritime and road transportation sectors. The subsidies shall cover at most 30% of the project’s approved realized costs.

The Haminan Energia facility, expected to be completed in autumn 2018, will feature a 30,000 m3 LNG tank and equipment related to receiving, unloading, storing and delivering LNG. An estimated 118,000 tons of gas will travel through the terminal each year.

“The ministry has granted investment subsidies to four LNG projects this autumn. This will launch over 300 million euros in investments in liquefied natural gas terminals. The objective is to build a comprehensive terminal network on Finland’s coastline, which will generate alternative sourcing options for maritime transport and industry,” said Minister of Economic Affairs Jan Vapaavuori.

The terminal differs significantly from previously subsidized projects in that it is situated in an existing gas network. This would make it possible to replace gas with LNG, and increase competition in the gas market by creating an alternative for the gas currently imported from Russia. Moreover, the significance of the project on reliability is significantly greater than that of other subsidized projects.

A sum of 123 million euros has been allocated from this year’s State budget as investment subsidies for LNG terminals. In September, the ministry granted a total of 65.2 million euros in subsidies to three projects; Manga LNG is to build a terminal in Tornio, Skangass is to build one in Pori and Aga is to build one in Rauma.

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