Estonia's Alexela to start building LNG terminal in Finland
Hamina LNG Oy, a joint venture between Finnish Hamina Energia Oy and Estonian Alexela Varahalduse AS, on Thursday, June 22, adopted a final investment decision and will start the construction of a 95 million Euro liquefied natural gas (LNG) terminal at Hamina in Finland.
The first stage of the project will see the construction of a 30,000 cubic meter container along with the capability for receiving, gasifying and reloading of LNG from ships, which allows to forward natural gas into the local distribution network and also supply natural gas to customers who are not connected to the network, Alexela said.
Altogether, 30 per cent of financial support was allocated to the 95 million Euro project by the Finnish state in 2014.
The terminal will also start supplying land and maritime transport in order to allow for more extensive use of environmentally friendly transport fuel. To respond to market demand, plans for the future include the construction of a second container with a capacity of 20,000 cubic meters.
LNG is a new, renewable gas supply source and enables to create new energy intensive industrial sectors in the Hamina area of Finland. The vision of the Finnish government sees LNG as the basis of economic growth not only in the Hamina-kotka area, but in the whole country.
Altogether 100 new jobs will be created during the time period of the construction project from 2017 to 2020. At least 10 permanent jobs with high added value will be created at the launch of the terminal in 2020.
The construction of the Hamina LNG terminal is part of the development strategy of Alexela's LNG business division in the Baltic countries and Finland. At present, the preparation of the construction project of the Paldiski LNG terminal have also been finished -- including the implementation of an LNG terminal plan, the finalization of the environmental impact assessment, the terminal has received a permit for the special use of water and the engineering design works for the organization of an international turnkey construction procurement have been finished.
The final investment decision for the launch of the construction of Paldiski LNG terminal is on hold until consultations between Baltic prime ministers and Alexela and Klaipedos Nafta with regard to the EU co-funding of the regional import terminal have been finalized.
Plans also include the construction of a cogeneration plant at Paldiski, which in addition to supplying thermal and electric energy to the LNG terminal, would also create the potential for the realization of energy intensive industrial investments in Estonia in the prospective Paldiski energy commune.
Alexela Group is a holding company, which gathers the companies related to the same circle of owners over the last two decades into the uniform structure of Alexela Group as the umbrella organisation.
Alexela Group operates in three areas: energy, the metal industry and property development. The group employs over 1,000 people.