Haminan Energia Secures Govt Subsidy for Its LNG terminal

December 11, 2014

Finland’s Ministry of Employment and Economy (MEE) granted 27.6 million euros in investment subsidies to Haminan Energia for the construction of an LNG terminal at the Port of HaminaKotka’s oil and gas harbour.

The subsidies shall cover at most 30 per cent of the project’s approved realised costs.

“The MEE 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 create alternative sourcing options for maritime transport and industry that uses gas,” Minister of Economic Affairs Jan Vapaavuori explains.

The Haminan Energia liquefied natural gas terminal, the construction of which is to be completed in autumn 2018, would be made up of one LNG tank, 30,000 cubic metres in size, and machinery related to receiving, unloading, storing and delivering LNG. An estimated 118,000 tonnes of gas will travel through the terminal each year.

The terminal will sell LNG to industry, maritime transport and road transport. LNG would for the most part replace the present use of natural gas in industry, fuel oil in maritime transport and gasoline and diesel in road transport.

The terminal differs significantly from previously subsidised 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.

A sum of 123 million euros has been allocated from this year’s Finlad’s budget as investment subsidies for LNG terminals. In September, the MEE 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.

About 30 million euros of allocated funds are still unused. The ministry is currently processing three more subsidy applications.