Finnish gas company Gasum has abandoned its plans to build the Finngulf LNG import terminal in Finland with an offshore pipeline connection (known as Balticconnector) to Estonia.
The projects were not commercially viable due to insufficient demand for LNG in Finland and huge development costs, said the company, which is 25% owned by Russia’s Gazprom and 75% by the Finnish government.
“The Finnish gas market and its future outlook have changed substantially since 2008 when plans for the projects were initiated. The competitiveness of gas has deteriorated and gas consumption has decreased,” Gasum said in a statement.
Natural gas demand in Finland fell to 29.3 terawatt-hours (2.8bn cbm) in 2014, down 12% from 2013, according to Gasum data.
“Gasum is investing constantly in the development of the Finnish gas infrastructure. Our key objectives are to ensure our customers’ access to clean and competitive fuels and at the same time develop the Finnish biogas market and Nordic LNG market,” said Johanna Lamminen, Gasum’s CEO.
Gasum’s subsidiary Skangas is building an LNG terminal in Pori, Finland, and also co-owns the LNG terminal in Tornio, Finland, which is currently under construction.