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Leasing of LNG terminal ship will ensure sufficient gas supply in Finland

Ministry of Economic Affairs and EmploymentMinistry of Finance
Publication date 20.5.2022 12.42
Press release
Photograph: Excelerate Energy

Gasgrid Finland Oy and US-based Excelerate Energy, Inc. signed a ten-year lease agreement for the LNG terminal ship Exemplar on 20 May 2022. The vessel will safeguard Finland’s security of supply and help Finland meet its gas needs in the event that imports of Russian pipeline gas are shut down.

The transmission network company Gasgrid has been conducting negotiations on leasing the terminal ship in line with the policy outlined by the Ministerial Committee on Economic Policy in April. 

“The LNG terminal ship will play a major role in securing gas supplies for Finland’s industry. It is equally important to move construction and permit procedures forward without delay so that the vessel will be ready to operate on the coast of Finland by next winter. I would like to thank the companies for their swift work and productive cooperation,” says Minister of Economic Affairs Mika Lintilä.

The terminal ship will be taken into use next winter and will be located in Southern Finland. The necessary port structures will be built for the vessel along the coasts of both Finland and Estonia. If the structures in Estonia are completed first, the vessel can be placed temporarily on the Estonian coast until the necessary infrastructure in Finland is ready for use.

The volume of the LNG terminal ship Exemplar is 151,000 cubic metres, which corresponds to approximately 68,000 tonnes of liquefied natural gas (LNG). LNG from the global market will be delivered to the terminal ship on tankers, which are expected to visit the terminal 2–3 times a month. The liquefied natural gas is revaporised on board the ship and fed into the natural gas transmission network.

According to Gasgrid, the timetable for the project will be confirmed in June. The company estimates that the total costs of the LNG terminal ship project will be approximately EUR 460 million under the ten-year lease agreement. There will also be costs related to the volume of use.

Security of supply a key priority

“We have launched a number of measures to improve our security of supply, including the supply of natural gas. The LNG terminal will make it possible for us to break free from Russian gas. I look forward to seeing all parties work swiftly to complete the project,” says Minister of Finance Annika Saarikko.

Finland is dependent on imported natural gas because we do not have our own resources or production. Natural gas accounts for about five per cent of all energy consumption in Finland. Natural gas is mainly needed for industrial processes, transport, and combined heat and power generation. The LNG terminal ship will secure gas supplies for industry in particular, making it an important project for all of Finland and its economy.

The Balticconnector gas pipeline between Finland and Estonia will make it possible to import gas from the Baltic states instead of Russia. Gas will also be supplied to Tornio and Pori through smaller LNG terminals, and to the terminal to be completed Hamina this autumn.

Household customers’ gas needs can be met in all situations. The National Emergency Supply Agency (NESA) is prepared to meet the needs of protected gas customers, i.e. households that have joined the distribution network. NESA is also preparing to be able to meet the gas needs of healthcare and social welfare and of the energy-critical food industry.

Inquiries:

Riku Huttunen, Director General, Ministry of Economic Affairs and Employment, tel. +358 50 431 6518
Olli Sipilä, Chief Executive Officer, Gasgrid Finland Oy, olli.sipila(at)gasgrid.fi, tel. +358 40 589 4686
Joel Kuuva, Special Adviser to the Minister of Finance, tel. +358 50 414 6444

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