ENTSOG GRIP BEMIP 2014-2023 / Main Report

Finnish industry and gas market actors plan the development of LNG import, transmission and distribution logistics in Finland. By investing along the whole value chain, market actors aim to ensure efficient regional access to LNG and hence, providing an opportunity for the Finnish industry and transport sector to converse from the existing fuels to the more competitive, cleaner and efficient natu- ral gas. From the Finngulf LNG terminal, LNG will be supplied by feeder vessels to small scale LNG terminals around the Baltic Sea region and by semi-trailers directly to off-grid customers. The Finnish industry in multiple sectors has indicated substantial interest in off- grid use of LNG. In addition, in the road transport segment, the EU Clean Fuel Strategy aims to have publically accessible natural gas re-fuelling points (CNG), containing common standards, with maximum distances of 150 km Europe-wide and a LNG refueling station every 400km along the Trans European Core Network. Since the Finnish gas network only covers the southern parts of the country, a majority of the new stations are to be off-grid. This has been identified as a major growth opportunity for the LNG markets in Finland, supported by the Finngulf LNG terminal. The off-grid transport sector is predicted to grow significantly as the re­ gional LNG distribution network is developed, and thus LNG efficiently provided to the markets. By 2030 the regional transport sector is estimated to stand for annual consumption of some 26,000 tons of LNG. The regional marine transport sector is developing as a reaction to the SECA restrictions and indications of significant future growth in the marine transport segment are envisaged. Presently there is one passenger ferry in the Baltic Sea region running on LNG and more investments in LNG powered fleet are currently planned. Natural gas is the best choice for improved balancing capability and peak load management. The Finngulf LNG terminal located in Finland is an optimal solution for improving the balancing capability and peak load management, as the distance to the major markets is as short as possible. The closer the location of the terminal is to the major markets the more efficiently can it be used to balance the fluctuations in gas consumption and production. The underlying assumption is that LNG will be used for both base load and peak load purposes during the year in Finland.

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Figure 2.7: Off-grid demand

In the coming years Gasum will invest significantly in the use of natural gas in the transport sector. Currently there are 20 filling stations in the area covered by the Finnish natural gas network and the stations offer both biogas and CNG. The num- ber of gas filling stations is planned to increase annually and by 2020 the number is estimated to be 60. In addition, the Finngulf LNG terminal will enable the develop- ment of significant off-grid markets and filling stations can then be located outside the traditional gas network. This will serve the private vehicle base as well as the public and private transport sectors.

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Baltic Energy Market Interconnection Plan GRIP 2014–2023