ENTSOG GRIP BEMIP 2014-2023 / Main Report

The Balticconnector consists of a subsea bi-directional pipeline between Inkoo, Finland and Paldiski, Estonia along with grid enhancements in both countries. The transit capacity of the offshore pipeline will be 7.2mcm/ d, 300,000m³ / h and the compressor stations (CS) in Finland and Estonia enable transit flows between Finland to Estonia as well as between Finland and the Undergroud gas storage (UGS) in Latvia. Once commissioned, the Balticconnector will connect the Finnish and Baltic gas infrastructures and hence, would make LNG from the Finngulf LNG terminal available to Baltic countries. The Balticconnector will ultimately play an important role in integrating the regional gas markets. Once the market area is interconnected, transit flows will significantly increase due to price harmonization flows and utilization of storage services. The rise in transit flows will increase the utilization rate of the transmission system and thus, lower the transmission tariffs. Close cooperation between the regional TSOs on tariff planning enables competitive gas transit pricing. This is especially important in the Baltic Sea region, where the natural gas storage is situated in one specific location. Should the EU funding not be granted to the Finngulf LNG terminal, Gasum will most likely develop a national LNG solution in Porvoo. The national LNG terminal in Porvoo would have a volume of some 150,000m³ with bunkering vessel loading facility, LNG road tanker capability and injection capacity to the existing gas trans- mission network. Together the Finngulf LNG and the Balticconnector projects would significantly improve the regional and national security of supply (SoS), reduce the dependence on single supplier, function as an energy storage and ultimately, link the separate gas grids and storages in a balanced system that would end the isolated market positions of Finland and the Baltic states. Combined, the Finngulf LNG terminal and the Balticconnector projects meet all PCIs identification objectives as it was highlighted by the European Council in 2011: completion of the internal energy market and linkage of isolated regions; increased solidarity between Member States in the energy field; alternative supply or transmission routes; diversification of energy sources and; increased use of renewables compared with traditional sources.

FINAL INVESTMENT DECISION

Engineering, EIA, permitting and procurement TERMINAL INFRASTRUCTURE

Communal construction permit from Inkoo

Site preparation

Water permit – Harbour area

Harbour and sea lane construction

BOP Engineering and procurement TERMINAL

Construction – Tank 1 and 2

First Gas

Receiving First Load LNG

Engineering and procurement BALTICCONNECTOR – OFFSHORE PIPELINE

Water permit

Construction

First Gas

year 1

year 2

year 3

year 4

year 5

year 6

year 7

Figure 2.6: The expected timeline of the Finngulf LNG and the Balticconnector projects

Baltic Energy Market Interconnection Plan GRIP 2014–2023 | 17