The availability of natural gas is an important part of Finland’s energy security

From the reader. Electricity prices have been written a lot about electricity prices in the past months, both in traditional media and on social media. This is self-evident, because the price of electricity affects industry, the business of Finnish companies, and the everyday life of individual people in many different ways – especially when the weather gets colder.

Another important form of energy, namely natural gas, is quite often left behind in discussions. Although the share of natural gas in Finland’s energy consumption is only about three percent, it plays a key role in electricity and heat production as well as in various processes of industry and logistics.

The importance of natural gas will grow even more in the coming years, as Finland strives towards carbon neutrality by 2035. From the point of view of a sustainable energy economy, natural gas is a significantly better alternative than other fossil fuels due to its lower carbon dioxide and nitrogen oxide emissions.

Natural gas is a key part of energy security

Although renewable forms of energy will probably at some point also revolutionize the energy consumption of heavy industry, natural gas is an important transitional solution before the widespread adoption of significantly greener alternatives. Because of this, the gas issue is now more topical than perhaps ever before.

During my four-year gas market career, I have noticed that the importance of international politics cannot be underestimated when talking about the natural gas business. Especially in these exceptional years and in the midst of crises, the perspective of energy security is emphasized even more.

Although crises can sometimes spur change, it doesn’t necessarily happen instantly. Kauppalehti reported in the summer (KL 25.6.) how Russian gas imports to Finland will finally end. The import of pipeline gas from Russia already stopped after the war of aggression began, but liquefied natural gas has been imported from Russia to the ports of Tornio and Pori despite that.

With the new sanctions of the European Union, the trade in Russian gas has now come to an end and the parliament has a ban on Russian gas on its table.

Physical natural gas storage in Finland?

It is good to keep an eye on the longer-term energy security issues and political debate related to natural gas, because their effects are visible in the whole society.

Even though Russian transport ends, Finland is still dependent on imported gas. The import routes of liquefied natural gas from other markets and the Balticconnector gas pipeline ensure that there will be enough natural gas in Finland in the future as well. European stocks are currently at a good level, which provides security for the coming winter months.

I would also like to emphasize the importance of developing the competitiveness of Inkoo’s terminal and stronger commercialization. We could possibly also think about building a physical natural gas storage facility in Finland to improve security of supply.

In addition to the extremely important issue of security of supply, the pricing of natural gas is key. We must not weaken Inkoo’s competitiveness compared to other LNG terminals in the Baltic region, for example due to too large tariff differences.

Pasi Näkki

CEO, Elenger Oy