ENTSOG GRIP BEMIP 2014-2023 / Main Report

ANALYSIS OF THE BALTICCONNECTOR

The Balticconnector gas interconnector between Finland and Estonia is being de­ veloped jointly by the Finnish (Gasum Oy) and Estonian (AS EG Võrguteenus) TSOs. The project promoters indicated their full commitment to the Balticconnector project by signing a MoU in December 2012. The Balticconnector consists of an 81km 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 / day, 300,000m³ / h and CSs to be built in Finland and Estonia will enable transit flows from Finland to Estonia as well as between Finland and the Inčukalns UGS in Latvia. The EIA programme on the Finnish side was final- ized in November 2013 and currently the EIA process continues with the impact assessment and EIA report drafting phase. On the Estonian side, the superficies license which is a prerequisite for the launching of EIA has been acquired. The Balticconnector gas interconnector together with the Finngulf LNG terminal significantly enhances the security of supply in the Eastern Baltic Sea region by end- ing the prevailing single-supplier situation, enabling the provision of LNG from the Finngulf LNG terminal to the Baltic countries and providing the Finnish gas mar- ket with access to the Inčukalns UGS in Latvia. The Balticconnector plays a vital role in successfully connecting the Finnish and Baltic gas transmission networks and thus, the further development of a regional gas market. In addition, through Baltic­ connector and other regional grid enhancements, the Eastern Baltic Sea region gas markets can then be connected to the single European energy market. The Baltic- connector and the Finngulf LNG terminal provide an optimal solution for satisfying the regional gas demand as they provide diversification of supply sources, regional price convergence and an adequate level of capacity. Furthermore, the Baltic­ connector provides the regional market with greater opportunities to utilize natural gas as a perfect low-emission fuel for peak shaving power production and further develop the position and possibilities for biogas production and utilization through larger markets. The Balticconnector and the Finngulf LNG terminal 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.

Image courtesy of AS Latvijas Gaze

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Baltic Energy Market Interconnection Plan GRIP 2014–2023