FORTUM CORPORATION PRESS RELEASE 9.6.2022
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 at close 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 ten 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.
The floating LNG terminal vessel Exemplar
The floating storage and regasification unit (FSRU) Exemplar is 291 meters long and 43 meters wide. It has a volume of approximately 151,000 cubic meters, corresponding to approximately 68,000 tonnes of LNG, liquefied natural gas, when fully loaded. This means approximately 1,050 GWh of energy content.
FSRU Exemplar's evaporation capacity is 140 GWh/day and even more than 40 TWh per year.
FSRU Exemplar's evaporation capacity exceeds Finland's annual natural gas demand, which has historically been approximately 25 TWh per year.
The significant capacity FSRU Exemplar serves the gas market in the entire Baltic Sea region via the Balticconnector interconnector pipeline.
Fortum deep-water port and industrial area in Inkoo
The Port of Inkoo is located at Fortum Joddböle industrial area about 60 kilometers west of Helsinki.
Fortum owns the port that is operated by Inkoo Shipping Oy. The port handles dry bulk materials such as solid fuel used in power plants.
It is a deep-water port, which means it can accommodate the floating LNG terminal vessel "Exemplar".
The port is well situated about 1.5 km from the Balticconnector natural gas pipeline that unites the Finnish and Baltic countries' gas markets.
Fortum operated the largest coal-fired plant in the Nordic countries at the Joddböle site until its permanent closure in 2016. The plant was dismantled in 2020 and over 90% of the materials were recycled.
The site's location next to the deep-water port and high-voltage transmission network, makes it an ideal location for power-intensive, clean industries. Fortum is exploring various options for future uses of the site.
Olli Sipilä, CEO, Gasgrid Finland Oy, +358 40 589 4686, olli[dot] sipila[at] gasgrid[dot] fi
Esa Hallivuori, Head of Gas Market Unit, Gasgrid Finland Oy, +358 40 581 5027, esa[dot] hallivuori[at] gasgrid[dot] fi
Fortum News Desk, newsdesk[at] fortum[dot] com, +358 40 198 2843
Gasgrid Finland Oy
Gasgrid Finland Oy is a Finnish state-owned company and transmission system operator with system responsibility. We offer our customers safe, reliable and cost-efficient transmission of gases. We actively develop our transmission platform, services and the gas market in a customer-oriented manner to promote the carbon-neutral energy and raw material system of the future. Find out more: www.gasgrid.fi/
Fortum and Uniper form a European energy group committed to enabling a successful transition to carbon neutrality for everyone. Our 50 gigawatts of power generating capacity, substantial gas import and storage operations, and our global energy trading business enable us to provide Europe and other regions with a reliable supply of low-carbon energy. We are already Europe's third largest producer of CO2-free electricity, and our growth businesses focus on clean power, low-carbon energy, and the infrastructure for tomorrow's hydrogen economy. In addition, we design solutions that help companies and cities reduce their environmental footprint. Our 20,000 professionals and operations in 40 countries give us the skills, resources, and reach to empower the energy evolution toward a cleaner world. fortum.com; uniper.energy