Finnish grid Gasum plans 3 LNG sites to supply maritime fuel

Wed Nov 14, 2012 9:11am EST

* Gazprom sees global LNG transport demand at 40 bcm in 2030

* Baltic Sea to have Emissions Control Area from 2015

* Gasum also wants full-sized LNG terminal from 2019

By Henning Gloystein

TALLINN, Nov 14 - Finnish gas grid operator Gasum said it planned to build three liquefied natural gas (LNG) bunker sites to supply the maritime transport sector, where demand is set for strong growth in the Baltic Sea region by 2015.

From January 2015, the Baltic Sea will be part of a so-called Emissions Control Area, which is designed to reduce harmful emissions by the shipping sector.

"This market will grow fast and we want to be a leader in this sector," Gasum Chief Executive Antero Jannes said at an energy conference in Tallinn, Estonia.

Russian gas export monopolist Gazprom has said it sees global demand for LNG as transport fuel at 40 billion cubic metres (bcm) by 2030, which compares with total annual gas demand of 90 bcm in Germany, Europe's biggest economy.

LNG is currently used almost exclusively for electricity generation at power plants, but ports around the world including in the Netherlands and Singapore, want to increase LNG use.

Jannes said Gasum was investing in three marine-sized LNG import and storage sites to supply the shipping and industrial sectors.

Finland also wants to build a full-sized LNG import terminal on its southern coast to serve the power sector.

Jannes said the terminal should be connected to Estonia through a gas pipeline and that a final investment decision was planned for late 2014 in order to receive first gas in 2019.

Gasum is owned by Finnish utility Fortum with 31 percent, Russia's Gazprom with 25 percent, the Finnish government with 24 percent and Germany's E.ON with 20 percent.

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