Finland approves three new LNG terminals

Finland's Ministry of Employment and the Economy announced that it has committed a total of €65.2 million in energy subsidies for three new LNG terminals.

With the help of this support, Manga LNG Oy, Skangass Oy, and Oy Aga Ab will build LNG terminals in Tornio, Pori and Rauma, respectively.

These new terminals will help facilitate a move to significantly reduce the industrial use of fuel oil and LPG in Finland, according to project officials.

The decrees to go ahead with these three operations will see more than €200 million being invested into LNG terminals. This will then instigate the development of a network of terminals along the Finnish coastline, said Minister of Economic Affairs Jan Vapaavuori.

According to estimates, the market potential for the use of LNG by the shipping and other industries is particularly significant in the Satakunta region. Furthermore, a terminal in the Bay of Bothnia would make possible the use of LNG in all the harbors located in the Northern part of the Bay of Bothnia.

Manga LNG Oy was awarded 33,155,400 euros for the construction of a terminal at Röyttä Harbor in Tornio, Northern Finland. Due to be completed in 2017, the terminal will have a LNG storage capacity of 50,000 m3. Manga LNG Oy operates as a JV by Outokumpu Oyj, SSAB, Skangass Oy and EPV Energia Oy.

Meanwhile, Skangass Oy was awarded 23,441,500 euros for the construction of a terminal at Tahkoluoto Harbor in the Port of Pori. The Pori terminal will have an LNG storage capacity of 30,000 m3. It should be operational in autumn 2016. Skangass Oy is a subsidiary of the Norwegian company, Skangass AS. Gasum Oy has a 51% shareholding in Skangass AS, with the remaining 49% owned by the Norwegian company Lyse Energi AS.

Finally, Oy Aga Ab was awarded 8,619,200 euros for the construction of a terminal in the Port of Rauma. The combined storage capacity of the Rauma terminal's eight LNG tanks will be 10,000 m3. Work on the terminal is set for completion in early 2017. Oy Aga Ab is a subsidiary of the Swedish company Aga AB, which in turn is owned by Linde Gas Holding AB. Linde Gas Holding AB is owned by the German company Linde .

The combined employment effect of the three projects' construction phases is estimated to be approximately 500 person years. Upon completion, the terminals and their associated logistics chains are hoped to lead to around 40 permanent jobs.

The combined maximum operating capacity of the three terminals will be 450,000 tons, which equates to more than 6 terawatt hours/year. The three new terminals will also reduce annual CO2 emissions by approximately 370,000 tons and carbon emissions by 1,870 tons.

The projects on this list are intended to develop Europe-wide gas networks and eliminate regional isolation, according to the government.