EU grants EUR 5 million for the planning of a natural gas pipeline between Finland and Estonia
The European Commission has granted Baltic Connector Oy and Elering Gaas As EUR 5.4 million in funding for the planning of a natural gas pipeline that will run between Finland and Estonia. The Ministerial Committee on Economic Policy decided in favour of continuing the process, completing the application on Tuesday 1 December 2015
In October 2015, Finnish state-owned company Baltic Connector and Estonian Elering Gaas submitted a joint EU funding application to the European Commission for the Balticconnector pipeline. The two companies decided to withdraw their funding application submitted in October in order to make further specifications to the project plan. The changing of project promoter from Gasum to Baltic Connector Oy, which occurred only a few days before submission of the funding application, had an impact on the application process and planning.
The Balticconnector pipeline would achieve EU Energy Union objectives, particularly with regard to the internal gas market, as well as by reducing dependence on a single supply source.
The Commission has found Baltic Connector to be a reliable actor and one capable of meeting the project's financial and technical obligations. On Monday 30 November 2015, the Commission granted Baltic Connector Oy and Elering Gaas As EUR 5.4 million in funding for project planning. Of this, EUR 4.65 million will go to Finnish state-owned Baltic Connector Oy. This funding makes it possible to continue with planning work. Funding will be sought for the project during the next application round.