Finnish gas utility Gasum has abandoned its plans to build the Finngulf liquefied natural gas (LNG) import terminal in Finland with an offshore pipeline connection (known as Balticconnector) to Estonia, reports Reuters.
“On the basis of the studies Gasum has conducted, the Finngulf and Balticconnector projects are not regarded as commercially viable and there is not sufficient demand for them in the Finnish market,” Gasum said in a statement.
The company's surveys show that the Finnish gas market has changed significantly compared to 2008, when these projects were started. Natural gas is not as competitive as it used to be and consumption has significantly decreased, said Gasum.
“The competitiveness of gas has deteriorated and gas consumption has decreased. In Southern Finland in the area covered by the gas pipeline network, investments of this scale would further weaken the competitiveness of gas,” the state-owned company said.
Gasum said it will, trough its subsidiary Skangas continue to develop the small scale LNG network in Finland.
The decision would benefit Russia’s Gazprom, Finland’s sole natural gas supplier, which also has a 25 percent stake in Gasum.
The government, which has the remaining 75 percent stake in Gasum, said the Nordic country can still apply with Estonia for European Union’s financial support to build the pipeline across the Gulf of Finland.