Russia to stop gas supply to Finland after power cut

Helsinki: Finland’s state-owned gas company Gasum said imports of liquefied natural gas (LNG) to Finland from Russia’s Gazprom Export would end on Saturday morning.

Gazprom Export has informed Gasum that natural gas supply to Finland under Gasum’s supply contract will be interrupted at 7 a.m. on Saturday (May 21, 2022), the Finnish energy company announced on Friday, the report reported. Xinhua news agency.

Therefore, Gasum will continue to supply natural gas to its customers via the Balticconnector gas pipeline. The company’s gas filling stations in the gas network area will continue to operate normally.

Mika Wiljanen, CEO of Gasum, said the situation was “very unfortunate”.

Earlier on Tuesday, Gasum announced that it refused to pay Gazprom Export in rubles, as the Russian company had requested in early April. Consequently, Gazprom Export informed Gasum that the gas supply would end.

Although the use of natural gas represents only 5% of Finland’s energy mix, the sudden stoppage of its supply from Russia will have repercussions on the economy and consumers until alternative systems are deployed.

Pia Oesch, director of the energy sector of the National Energy Supply Agency (HVK), said that the capacity of the Balticconnector is sufficient to meet Finland’s needs during the summer.

However, this situation could change in the fall if the crisis persists, Oesch added.

According to the Finnish Energy Authority, most of the natural gas used in Finland is currently imported from Russia. There is no natural gas production in Finland. LNG is imported into Finland by ship, while small amounts of biogas produced in Finland are supplied to the natural gas network, but these are not sufficient in volume to replace Russian imports.

The Finnish government announced on Friday that a floating LNG terminal is due to arrive in southern Finland, ready for use next winter.

Gasgrid Finland and the American company Excelerate Energy have signed a ten-year lease agreement for the Exemplar LNG terminal, which will help Finland meet its gas needs in the event of a stoppage of Russian gas pipeline imports.

Economic Affairs Minister Mika Lintila said the LNG terminal will play a major role in securing the gas supply for Finnish industry.

“It is equally important to move forward with the construction and licensing procedures without delay so that the ship is ready to operate on the Finnish coast by next winter,” he added.

A week earlier, the Russian state-owned company RAO Nordic had halted all electricity exports to Finland.

Finnish media have predicted that the disruption of electricity and gas supplies from Russia will put further pressure on costs in a situation where energy prices are already at record highs and will have a serious impact on the economy. economy and employment in Finland.