Finland Grants 65.2 Million Support to 3 LNG Terminals

Finland’s Ministry of Employment and the Economy (MEE) has given the green light to LNG terminals in Tornio, Pori and Rauma, committing a total of EUR 65.2 million in energy subsidies. 

‘With the help of this support, Manga LNG Oy, Skangass Oy, and Oy Aga Ab will build LNG terminals in Tornio, Pori and Rauma respectively. These new terminals will help facilitate a move to significantly reduce the industrial use of fuel oil and liquid petroleum gas (LPG) in Finland,’ reads a note released on Thursday. 

The Ministry said that the stakeholders will invest more than EUR 200 million, adding that LNG offers an environmentally-friendly and carbon-free alternative fuel source for the shipping industry.

The Ministry awarded 33,155,400 euros, 23,441,500 euros and 8,619,200 euros to Manga LNG Oy, Skangass Oy and Oy Aga respectively.

Manga’s LNG terminal in Tornio is expected to have a LNG storage capacity of 50,000 cubic metres, Skangass Oy’s project in Pori an LNG storage capacity of cubic metres 30,000 and Oy Aga Ab a combined storage capacity of 10,000 cubic metres.

’In addition to the three projects currently under way, the Ministry of Employment and the Economy is also handling applications for investment support from Haminan Energia Oy, LNG Finland ry, and Containerships Ltd Oy. A comprehensive decree on these three applications is intended to be issued in 2014.’

Skangass welcomed the support, saying that it will make its own investment decision in the next few weeks. 

”We’re very happy and pleased with the ministry's decision. Once completed, the Pori LNG terminal will serve the entire western coast of Finland from Hanko to Kokkola and therefore diversify the Finnish gas market. The Tahkoluoto Port is accessible around the year and already has the infrastructure in place, active vessel traffic and key customers in the local area. The City and Port of Pori have also provided our project with excellent support,” Skangass Sales and Marketing Director Tommy Mattila commented in a separate statement.