The Finnish Ministry of Employment and the Economy said that today it committed a total of €65.2 million in energy subsidies for three 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 liquid petroleum gas (LPG) in Finland.
“The decrees to go ahead with these three operations will see more than €200 million being invested into LNG terminals,” said Minister of Economic Affairs Jan Vapaavuori after signing the decrees. "This will then instigate the development of a network of terminals along the Finnish coastline.
“LNG offers an environmentally-friendly and carbon-free alternative fuel source for the shipping industry. It also enables us to create alternative procurement streams for industries that use gas. 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 harbours located in the Northern part of the Bay of Bothnia.”
LNG terminal at Röyttä Harbour
Manga LNG Oy has been awarded €33 155 400 for the construction of a terminal at Röyttä Harbour in Tornio, Northern Finland. The terminal will have an LNG storage capacity of 50 000 m3 and is due for completion in 2017. Manga LNG Oy operates as a joint venture by Outokumpu Oyj, SSAB, Skangass Oy and EPV Energia Oy.
LNG terminal at Tahkoluoto Harbour
Skangass Oy has been awarded €23 441 500 for the construction of a terminal at Tahkoluoto Harbour in the Port of Pori. The Pori terminal will have an LNG storage capacity of 30 000 m3. It is set to be up and running in autumn 2016. Skangass Oy is a subsidiary of the Norwegian company, Skangass AS. Gasum Oy has a 51% share holding in Skangass AS, with the remaining 49% owned by the Norwegian company Lyse Energi AS.
LNG terminal in the Port of Rauma
Oy Aga Ab has been awarded €8 619 200 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 AG.
500 person years
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 t, which equates to more than 6 terrawatt-hours a year. The three new terminals will also reduce annual CO2 emissions by approximately 370 000 t and carbon emissions by 1870 t.
A supplementary state budget set aside investment support for LNG terminals in accordance with the decision made during the Government's spring 2013 session on spending limits. This support is valued at €123 million. In addition to the three projects currently under way, the Ministry of Employment and the Economy is also handling applications for investment support from Haminan Energia Oy, LNG Finland ry, and Containerships Ltd Oy. A comprehensive decree on these three applications is expected to be issued in 2014.
The large-scale regional LNG terminal planned for construction in Inkoo, Southern Finland, does not fall under the remit of the national aid programme. It is hoped that funding for this project can be secured from the European Commission's list of Projects of Common Interest (PCI). The projects on this list are intended to develop Europe-wide gas networks and eliminate regional isolation.
Adapted from press release by Ted Monroe
Read the article online at: https://www.lngindustry.com/liquid-natural-gas/18092014/finnish-government-commits-capital-to-lng-terminals-1430/