Finland and Estonia are planning to jointly lease a nearly 300-metre long liquid natural gas (LNG) terminal to secure the supply of gas imports, following the recent cutoff from Russia.
Russia stopped exporting LNG to Finland in May, a move that threatened some sectors, including the bakery, forestry and petroleum industries which rely on gas.
The floating LNG terminal is to be docked in the southern port of Inkoo, according to energy firms Gasgrid Finland and Fortum.
"The vessel project is absolutely essential for the security of supply of natural gas in the Baltic region – and therefore extremely urgent. I'm pleased that the decision on the location of the terminal was made [on] such a fast schedule. As the need for the terminal covers the entire Baltic Sea region, Inkoo provides an excellent location for the vessel," Gasgrid's CEO, Olli Sipilä said in a statement.
Gasgrid is leasing the vessel, dubbed Exemplar, from Excelerate Energy for a period of 10 years, and the terminal will be available by the winter, according to the company.
Finland's Minister for Economic Affairs, Mika Lintilä, voiced his support for the new arrangement, thanking the two companies for "taking quick action."
"It is important for our economy that the floating LNG terminal ensures the gas supply of our industry. The next step is to stay on schedule and get the port ready," Lintilä said in the statement.
The Exemplar ship is massive, measuring 291 metres long and 43 metres wide, with a gas storage capacity of 151,000 cubic metres.
With a maximum capacity of around 68,00 tonnes of LNG — or more than 40TWh annually, it will be able to meet Finland's annual demand for LNG on its own.
Historically, Finland's annual natural gas demand has stood at around 25 TWh per year.