Energy, Estonia, EU – Baltic States, Financial Services, Legislation

The two companies have in good cooperation specified and updated the application for funding to reflect the recent organizational and regulatory developments in the gas sector. Additional technical and economic studies have also been completed. In addition, the Finnish developer has strengthened its organizational and financial capacity and the level of the maturity of the project, Elering said.

In addition to the Estonia-Finland link, the Balticconnector project includes on the Estonian side investment in boosting Estonia-Latvia transmission capacity, CEO of Elering Taavi Veskimagi said.

Elering, the state-owned Estonian transmission system operator, and the Finnish state-owned Baltic Connector Oy are seeking EU cofinancing in the amount of 75 percent of the project's total cost of 250 million euros. The European Commission has previously granted 5.4 million euros for Balticconnector-related studies.

The pipeline connecting the Estonian and Finnish natural gas transmission networks will according to plans be completed in 2019. The connection is a precondition for creating an integrated Finnish-Baltic gas market and will increase the security of gas supply in the region.