Finland’s first floating LNG terminal to be placed in Fortum’s Inkoo port

Source: press release, 9 June 2022

The Port of Inkoo is located at Fortum Joddböle industrial area about 60 kilometres west of Helsinki
The Port of Inkoo is located at Fortum Joddböle industrial area about 60 kilometres west of Helsinki (photo: Fortum)

Gasgrid Finland and Fortum have signed a Letter of Intent on placing Finland’s first floating LNG terminal vessel Exemplar at Fortum’s Inkoo port. Located on the Southern Coast of Finland, Inkoo provides an optimal deep-water port in proximity to the pipelines distributing the gas mainly to industrial end-users in the Baltic region. This development enables independence from Russian pipeline gas.

Gasgrid Finland is leasing the floating LNG terminal vessel from Excelerate Energy Inc. for a duration of 10 years and aims to have the terminal available already next winter. The vessel’s capacity is sufficient for the gas needs of both Finland and Estonia. Russian gas supplies through the Imatra entry point have been stopped in May.

“I would like to thank Fortum, Gasgrid and their partners for taking quick action. It is important for our economy that the floating LNG terminal ensures the gas supply of our industry. The next step is to stay on schedule and get the port ready,” says Mika Lintilä, Minister for Economic Affairs of Finland.

“The vessel project is absolutely essential for the security of supply of natural gas in the Baltic region – and therefore extremely urgent. I’m pleased that the decision on the location of the terminal was made in such fast schedule. As the need for the terminal covers the entire Baltic Sea region, Inkoo provides an excellent location for the vessel,” says Olli Sipilä, CEO of Gasgrid Finland.

“At Fortum, we are very pleased to support energy security, industry as well as our national economy during these challenging times. Our Inkoo port is located on the site of our decommissioned coal power plant and provides nearly ready-to-use infrastructure and an optimal location for the country’s first floating LNG terminal. In the future, our plan is to further develop industrial activity on the site, so that it can contribute to the decarbonisation of society,” says Fortum’s CEO Markus Rauramo.

Fortum’s Inkoo port is accessible by a suitable sea lane, has a ready-to-use pier, is in close proximity of the Balticconnector pipeline between Finland and Estonia – and is available at short notice. Furthermore, Inkoo has undergone the necessary environmental impact assessments already in 2014-2015.

In addition to Inkoo, Gasgrid Finland and the Estonian electricity and gas transmission system operator Elering continue to develop a potential site in Estonia, as originally planned. The aim of this is to mitigate potential project risks and increase the probability that one of the sites is ready as early as possible for the next winter.