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Elering and Baltic Connector OY sign agreement to build gas interconnection

BC, Tallinn, 17.10.2016.Print version
The Estonian state owned transmission system operator Elering AS and the Finnish state owned company Baltic Connector OY on Monday signed an agreement on their cooperation concerning the undersea portion of the Balticconnector project to interconnect the natural gas transmission systems of Estonia and Finland, reports LETA/BNS.

The total cost of the project is 250 mln euros, of which 187.5 mln euros is covered by the European Union.


According to the agreement, the ownership of the submarine pipeline section of Balticconnector will be divided equally between the parties. The parties will prepare a joint procurement strategy for constructing the offshore section; the on-shore sections of the pipeline will be developed separately by each party.


Elering and Baltic Connector will establish a joint steering group, which serves as the highest decision-making body in questions regarding the common issues related to the project.

Elering and Baltic Connector will sign a grant agreement with the European Commission on EU co-financing for the Balticconnector gas interconnector project on Oct. 21, 2016.


Balticconnector will link the natural gas networks of Estonia and Finland with a 150 kilometer transmission pipeline, 80 kilometers of which is located on the seabed. The planned interconnector is expected to increase the security of supply and energy security in the entire region and will open the Finnish gas market by connecting it to the European gas network. The construction of the gas interconnector will be completed by 2020. 

 






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