EU Gives Green Light to Finland’s Second LNG Terminal

first_imgzoom The European Commission has given its consent to Finland’s plans to grant EUR 28 million (USD 31.5 million) for the construction of a second small scale liquefied natural gas (LNG) terminal at Hamina, on Finland’s South-East coast.The European Commission said that the project, which is expected to improve security of energy supply in the region and contribute to reducing carbon dioxide emissions, is in line with EU state aid rules and would not unduly distort competition in the single market.“The Hamina LNG terminal is one of several planned in Finland. These small scale LNG terminals will provide a new source of cleaner fuel for the maritime industry and diversify Finland’s gas supply sources,” Commissioner Margrethe Vestager, in charge of competition policy, said.The Hamina project is part of Finland’s plans to create a network of small LNG terminals with the aim of offering LNG fuelling stations for ships and ensuring an additional source of gas for Finland.The Hamina LNG terminal will also contribute to the development of infrastructure supporting alternative fuels in a port that is part of the trans-European transport network (TEN-T).The Hamina terminal will have a storage capacity of 30,000 cubic meters. The public funding of EUR 27.6 million would cover 30% of the total investment costs, while the remainder would be funded by the developer and future owner of the terminal.This is Finland’s second aid approval for a small scale terminal, as the country received a nod for another LNG terminal in September 2015. The terminal, which will be located at Pori on the West coast of Finland, is scheduled to be completed in autumn 2016.last_img read more