Sea bottom in Gulf of Finland seen to be appropriate for natural gas pipeline to Estonia

Gasum and gas companies of Baltic Countries examine possibility of link

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Studies commissioned by the Finnish natural gas company Gasum and the gas companies of the Baltic Countries, on the feasibility of a gas pipeline running across the Gulf of Finland, have been completed.
      According to the assessment, there are no technical obstacles to building a gas pipeline from Inkoo in Finland to Paldiski in Estonia. The cost would be "normal", or between EUR 100-120 million.
      Thorough examinations of the sea bottom on the proposed route were conducted last summer, and the results were analysed during the winter. No surprises were found on the route, such as shipwrecks, sunken weapons, or mines. Next in line are the environmental impact studies.
     
The length of the concrete-covered pipeline would be about 100 kilometres, and it would have a diameter of half a metre.
      The studies do not guarantee that the pipeline will actually be built. For that to happen would require the approval of three companies - Gasum, and the gas utilities of Estonia and Latvia.
      Both Estonia and Latvia have old pipeline links with Russia which date back to the Soviet times. Therefore, a new connection with the Russian gas network via Finland would not bring any diversification in the gas supply.
      The Inkoo link would primarily be an alternative to the investments that would be required for upgrading the old Russian pipeline.
     
The Baltic Countries want to strengthen their independence from a single energy supplier, and in the long term, the Inkoo connection could help in this.
      If Finland and the Baltic Countries were to decide together to build a terminal for liquefied natural gas, imports would be possible by ship, from the Middle East or Algeria, for instance.
      Setting up an LNG terminal requires cooperation, because such an installation would be expensive, and would require a large market of users. Building an appropriate-sized terminal would cost about EUR 200 million, says Gasum CEO Antero Jännes.
      "The best place for such a terminal would be Inkoo or Paldiski", Jännes says.
     
Even if no such terminal is ever built, Gasum feels that the pipeline between Inkoo and Paldiski is important.
      The pipeline would link the Finnish and Baltic gas networks, and it would be easier for the countries to utilise the large underground gas storage facility set up in Incucalins in Latvia in the Soviet period.
      Currently the electric utility Fortum owns 31 per cent of Gasum, while the Finnish state has a 24 per cent holding. The German E.ON Ruhrgas has 20 per cent, and the Russian Gazprom has 25 per cent. The Gazprom representative on the Gasum board of directors has come out in favour of studying the possibility of such a pipeline.
      The plan is not linked with the Nord Stream project, in which an undersea gas pipeline is planned to link Russia and Germany. This venture has run into some opposition from environmental officials.


Previously in HS International Edition:
  Finnish environment officials criticise plans for undersea gas pipeline (28.2.2007)

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