Elering and Baltic Connector signed a cooperation agreement to construct the offshore section of gas interconnection
Today Elering and Finnish state-owned Baltic Connector signed an agreement concerning the cooperation related to the Estonian-Finnish gas interconnector construction project Balticconnector.
According to the agreement, the ownership of the submarine pipeline section of Balticconnector is divided equally between the parties. The parties will prepare a joint procurement strategy for constructing the offshore section; the on-shore sections of the pipeline are developed separately by each party.
Elering and Baltic Connector will establish a joint steering group, which serves as the highest decision-making body in questions regarding the common issues related to the project.
Elering and Baltic Connector will sign a grant agreement with the European Commission on 21 October 2016 on EU co-financing for the Balticconnector gas interconnector project. The total cost of the project is EUR 250 million, EUR 187,5 million of which is covered by European Union.
Balticconnector will link Estonian and Finnish natural gas networks with a 150-km transmission pipeline, 80 km of which is located on the seabed. The planned interconnector is expected to increase the security of supply and energy security in the entire region and will open the Finnish gas market by connecting it to the European gas network. The construction of the gas interconnector will be completed by 2020.
Herkko Plit, President and CEO, Baltic Connector Oy, tel. +358 50 462 0788
Taavi Veskimägi, Chairman of the Board and CEO, Elering AS, tel. +372 71 51 221