EU approves aid for Finland’s first LNG terminal

Finland has received approval from the European Commission to provide €23 million (£16.6m) worth of state aid for a Liquefied Natural Gas (LNG) terminal. The Commission said the nation’s proposal […]

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By Priyanka Shrestha

Finland has received approval from the European Commission to provide €23 million (£16.6m) worth of state aid for a Liquefied Natural Gas (LNG) terminal.

The Commission said the nation’s proposal to grant public funding – which will cover less than 30% of the total investment costs – to build a small-scale terminal at Pori is “compatible with EU state aid rules”.

The project – the first in Finland – is part of the country’s plans to create a network of small-scale LNG terminals. It aims to encourage the use of LNG as fuel for ships rather than fuel oil and liquefied petroleum gas.

It will have a storage capacity of 30,000 cubic meters and is expected to “significantly reduce” carbon emissions.

The Commission added the project contributes to the environmental protection and security of gas supply in Finland while maintaining competition in the Single Market.

EU 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.”