Energy, Estonia, EU – Baltic States, Gas, Legislation

The Balticconnector will be the first gas pipeline to connect Estonia and Finland and will significantly increase energy security in the eastern Baltic Sea region. It will allow the transportation of gas in both directions and, together with the gas interconnector Poland-Lithuania, will help finalize the Baltic Gas Ring and end the isolation of the Finnish gas market.  The Finnish gas market is almost fully dependent on imports from Russia.

"Today's signature is a result of close regional cooperation and a proof of true commitment on all sides to end energy isolation. It marks an important first step for connecting the gas markets of the Eastern Baltic Sea region with the rest of the EU gas market. Building missing infrastructure links which is a prerequisite for a resilient, competitive and sustainable EU energy market, is a priority for the Energy Union," Canete said in a press release. 

Once completed, the Balticconnector and the GIPL gas link between Poland and Lithuania will allow Finland and the Baltic states to diversify their gas sources and routes and thus help to effectively deal with possible supply shortages in the future. It will also help integrating the entire region into the EU's internal energy market.

The grant agreement is an amendment to an earlier grant agreement for the same project signed in May 2015 to transfer the grant from Gasum Oy to the new Finnish project promoter, a newly established state-owned company, Baltic Connector Oy.

The Balticconnector has been a European project of common interest since 2013. The pipeline will consist of three sections – the Finnish onshore section of 22 kilometers, the offshore section of 81 kilometers, and the Estonian onshore section of 47 kilometers. The capacity of the pipeline will be 7.2 million cubic meters per day. The total cost of the project is foreseen to be 250 million euros and the pipeline is expected to be operational by 2020.