At its meeting on 26 October 2016, the Board of Directors of Baltic Connector Oy took the final decision to invest in the construction of the Balticconnector gas pipeline. The main factors behind this decision were the Finnish Government’s policy to grant EUR 30 million for the company’s capitalisation, the agreement signed with the European Commission on 21 October 2016 concerning support of EUR 187.5 million for construction of the project, and the agreement on cooperation with the Estonian company Elering signed on 17 October 2016.
“This was the last formal decision required before construction can begin. Now we can focus on implementing the project in line with scheduled completion of the pipeline by the end of 2019,” says Herkko Plit, President and CEO of Baltic Connector Oy.
Baltic Connector Oy is a state-owned company set up in 2015 to implement the Finnish part of the Balticconnector gas pipeline project. Balticconnector is a gas pipeline between Finland and Estonia that will enable the natural gas markets of the Baltic countries and Finland to be connected and allow the integration of these markets with the European Union’s common energy market. The new connection will open up competition in the natural gas market and will mean that Finland is no longer as dependent as it is today on the gas connection from Russia.
The European Union has granted investment aid of 75% from the Connecting Europe Facility for Energy (CEF-E). The estimated total investment cost of the Balticconnector gas pipeline is EUR 250 million.
Herkko Plit, President and CEO, Baltic Connector Oy, tel. +358 50 462 0788