Gasum said it has decided not to build a regional LNG terminal in Southern Finland and the Balticconnector offshore pipeline.
“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 ,” Gasum said in a statement.
According to Gasum, 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 state-owned company said.
Gasum said it will, trough its subsidiary Skangas continue to develop the small scale LNG network in Finland
Skangas is constructing an LNG terminal in Pori, and 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, the company added.
LNG World News Staff; Image: Gasum