Construction of Balticconnector will begin in 2017 at a cost of almost 300 million euros

The financing agreement signed in Brussels on October 21, gives the green light for launching procurements to construct the Estonian-Finnish gas connection and, in all probability, to start construction work in 2017.

Elering and the Finnish partner Baltic Connector OY will construct the offshore section of Balticconnector jointly. “An agreement with the subsea pipeline procurement and design consultant is about to be signed. The construction procurement will be launched as soon as we have agreed on the details with our Finnish partner,” explained Chairman of the Elering Board, Taavi Veskimägi.

The on-shore sections of Balticconnector are to be developed separately by each party. Estonia is preparing a procurement for finding a consultant. A construction procurement for developing the Kiili pressure reduction station, Kiili-Paldiski pipeline and Paldiski compressor station will start as soon as the consultant has been chosen. In Finland, construction procurements for developing the Inkoo compressor station and Inkoo-Siuntio pipeline will take place over the next two years.

According to the financing agreement signed on Friday, the European Union will cover 75 per cent – 187.5 million euros – of the Balticconnector construction. The total cost of the project is 250 million euros. With the project to enhance the Estonian-Latvian gas connection, the investments amount to almost 290 million euros.

The 150 kilometre long Balticconnector gas pipeline starts near Kiili in Harjumaa, passes the town of Keila and enters the sea at Paldiski. In Finland, the gas pipeline reaches dry land at Inkoo and joins with the Finnish gas network in Siuntio.

The diameter of the Balticconnector subsea pipeline is 50 centimetres and the pressure in the pipeline is up to 80 bars; the diameter of the pipeline is 70 centimetres in the on-shore section between Kiili and Paldiski and the pressure is up to 55 bars. Estonian-Finnish gas interconnection will facilitate the movement of 7.2 million cubic metres of gas per twenty-four-hour period in both directions. The aim is to complete the connection by 2020.