ENTSOG GRIP BEMIP 2014-2023 / Main Report

4.2 Analysis of non-FID Projects

ANALYSIS OF THE FINNGULF LNG TERMINAL

Planning of a large scale LNG import terminal, the Finngulf LNG terminal is on- going in Finland with the Finnish TSO acting as the project promoter. The Finngulf LNG terminal will be located in Inkoo, on the Southern coastline of Finland. Inkoo is also the landing point of the Balticconnector gas interconnector between Finland and Estonia. Inkoo is a suitable location for the LNG terminal as the onshore pipe- line connecting the terminal to the natural gas transmission network is of reasona- ble length and the fairway of the Inkoo port is proper for large-scale LNG vessels. In addition, the terminal is ideally located to serve the on-grid and off-grid natural gas needs of the entire Eastern Baltic Sea region as well as to quickly respond to fluctuations in energy consumption. A national EIA report for the terminal project was completed in June 2013 and the national authorities gave their final comments in September 2013 confirming the fulfilment of requirements set for the EIA and that the process was done according to lawful requirements for the EIA process. The Finngulf LNG terminal is planned to have a net storage capacity of 300,000m³ with an estimated annual energy throughput of 15 – 28 TWh. From the terminal site a 20km long pipeline will be built to the existing Finnish gas grid with a network injection capacity of 12mcm / day to Finland and via Balticconnector pipeline 7.2mcm/ day to Estonia. The project includes the construction and operation of a single-berth marine jetty designed to berth and unload a “benchmark” type LNG vessel with transportation capacity of approximately 150,000m³. Marine design, following national guidelines for fairway designing, including fairway, turning circle and harbour basin, is based on the aforementioned design vessel. Although LNG for marine bunker fuel may be imported and exported from the same terminal, a jetty will also be constructed to accommodate smaller vessels. The Finngulf LNG terminal and the Balticconnector efficiently integrate the regional gas markets as well as play a key role in the process of connecting the region to the European energy network. The Finngulf LNG terminal will also connect the regional gas markets to the global LNG markets, thus significantly diversifying the gas supply to the regional markets. In addition, sourcing from the global natural gas markets will narrow the current price gap between the regional and the global markets. The Finngulf LNG terminal will greatly enhance the regional security of gas supply while the Balticconnector will connect the Finnish and the Baltic gas infrastructures, make LNG available to the Baltic countries as well as give the Finnish gas market access to the Latvian UGS. The increase in the security of supply will enhance the regional resilience as well as decrease the costs of disruptions. The Finngulf LNG terminal provides the best possible choice for peak load management and bal- ancing ability, expected to increase in the future in the region, due to its location in the largest regional gas market. The Finngulf LNG terminal will also provide the region with significant off-grid potential and therefore, the terminal can reduce the utilization of more polluting fuels, increase investments into gas-related infra­ structure therefore replacing investments in power generation utilizing more pol­ luting fuels, and add to the utilization of biogas. The Finngulf LNG terminal and the Balticconnector interconnector form a project cluster and hence, both projects need to materialize in order to provide the optimal benefits to the region. Both projects were included in the first EU-wide List of PCIs. The final investment decision for both projects will be made in 2015.

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