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Ending energy isolation of Eastern Baltic Sea region: Gas pipeline between #Estonia and #Finland

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balticconector2A first bidirectional gas pipeline will be built between Finland and Estonia. This will end the isolation of the Finnish gas market and boost the security of gas supply in the entire Eastern Baltic Sea region.

How will it work?

The project will integrate the Finnish gas system with the rest of the internal EU gas market in line with the European Commission's Energy Security Strategy to ensure that no region in Europe remains isolated. It is the result of a close regional cooperation facilitated by the Commission under the Baltic Energy Market Interconnection Plan (BEMIP). Balticconnector will end gas isolation of Finland by connecting it to the Continental European Network, increase the security of gas supply and solidarity in the region, enhance competition and reduce wholesale gas prices.

Futhermore, Balticconnector will bring concrete socio-economic benefits to the Baltic States and Finland. Once completed, Balticconnector, together with a gas link between Poland and Lithuania  will allow Finland and the Baltic States to diversify their gas sources, routes and counterparts, helping them to effectively deal with possible supply shortages in the future.

Costs

The total construction costs of the project are €250 million. In 2014 Balticconnector obtained a €5.4 million grant for studies under the Connecting Europe Facility (CEF).

In 2016 Balticconnector obtained a €187 million grant for works under the Connecting Europe Facility. This amounts to 75% of the construction costs – the highest co-financing rate possible under the Connecting Europe Facility, which can only be allocated to a project when the added value of ending the energy isolation is exceptionally high.

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