23.09.15. The European Commission has approved under EU state aid rules Finland’s plans to grant €23 million to construct a small scale LNG terminal at port of Pori on its west coast.
The Commission concluded that the plans to grant the public funding are compatible with EU state aid rules. The project aims to encourage the use of LNG as fuel for ships, in place of fuel oils and liquefied petroleum gases. Brussels concluded that the project contributes to environmental protection and to the security of gas supply in Finland while maintaining competition in the EU Single Market.
Seeking to end the energy isolation of the Baltic Sea Region and to integrate it fully into EU energy markets is a key building block for the EU’s Energy Union strategy and one of the key priorities of the Juncker Commission.
The Commissioner in charge of competition policy Margrethe Vestager said: “The LNG terminal in Pori is the first of its kind in Finland. It will provide a new source of cleaner fuel for the maritime industry and diversify Finland’s gas supply sources. It is a good example of how EU state aid rules can encourage sound public investment that helps the EU reach its goals on energy security and environmental protection.”
Currently, there are no LNG terminals in Finland. The Pori project is part of the country’s plans to create a network of small scale LNG terminals with the aim of offering alternative fuel infrastructure to the maritime industry.
The Pori terminal has a storage capacity of 30,000 cbm. The public funding of €23 million will cover less than 30 percent of the total investment costs; the remainder will be funded by the developer and future owner of the terminal.