The EU nation has leased a floating LNG terminal for 10 years
Finland has agreed a 10-year contract for a floating storage and regasification vessel (FSRU) with US-based Excelerate Energy to help replace Russian gas supply, Finance Minister Annika Saarikko said on Friday. .
“The LNG [liquefied natural gas] terminal will allow us to free ourselves from Russian gas”, Saarikko said as quoted by Reuters.
According to gas operator Gasgrid Finland, the total cost of the LNG terminal vessel, including the lease itself, is estimated at 460 million euros ($487 million). In addition to that, there “separate costs associated with the volume of use,” He said.
The vessel has a volume corresponding to about 68,000 tons of LNG when full, or about 1,050 GWh (gigawatt hours) of energy, and will be loaded with LNG about two to three times a month, Gasgrid Finland said.
“With more than 5,000 million cubic meters a year in regasification capacity, Exemplar [the vessel] can easily cover the combined gas consumption of Finland and Estonia and there is much more left over”, Excelerate CEO Steven Kobos told reporters.
In April, Finland and Estonia announced their intention to jointly lease a floating terminal to import LNG to help replace current deliveries of Russian gas.
Finland is bracing for an expected halt in gas flows from Russia, its main supplier. According to Finland’s state-owned energy group, Gasum, Russia’s Gazprom Export told it that natural gas supplies to the country would stop on Saturday if the company does not pay for future supplies in rubles. However, Finland recently rejected Moscow’s new payment mechanism.
The announcement also comes just two days after Finland formally applied to join NATO. Although Finnish media have previously reported that Moscow may turn off the taps in response, Russia has not confirmed the reports and the gas supply has not been stopped.