Finland’s plans to grant €23 million to construct a small-scale LNG terminal at Pori have been approved by the European Commission.
The European Commission has concluded that Finland’s plans to grant the public funding for the terminal in the Satakunta region on Finland’s west coast, are compatible with EU state aid rules.
The project aims to encourage the use of LNG as a full for ships, in place of fuel oils and liquefied petroleum gases. The Commission found that the project contributes to environmental protection and to the security of gas supply in Finland whilst maintaining competition in the single market.
Margrethe Vestager, EU commissioner in charge of competition policy says: ‘The LNG terminal in Pori is the first of its kind in Finland. It will provide a new source of cleaner fuel for the maritime industry and diversify Finland’s gas supply sources.
‘It is a good example of how EU state aid rules can encourage sound public investment that helps the EU reach its goals on energy security and environmental protection.’
Currently, there are no LNG terminals in Finland. The Pori project is part of Finland’s plans to create a network of small scale LNG terminals with the aim of offering alternative fuel infrastructure to the maritime industry.
The project will bring about a significant reduction in CO2 emissions by providing cleaner fuel for maritime transport. The infrastructure will increase the security of supply in Finland, providing local industries with access to gas.
The terminal has a storage capacity of 30,000 m3. The funding from Finland will cover less than 30% of the total investment costs with the remainder being funded by the developer and future owner of the terminal Skangass.
As previously reported, the company is investing €86 million into the terminal.