Network operator Elering reported on Thursday that it had applied for funding from the EU’s Connecting Europe Facility (CEF) together with Finland’s Baltic Connector OY. Funding by the CEF is an important step towards the investors’ final decision to build the new pipeline.
Construction on the proposed new pipeline intended to connect the Finnish and Estonian gas grids was originally planned for the ongoing year.
The two state-owned operators submitted the application for funding on Wednesday, Elering stated in a press release.
According to Elering’s spokesman Ain Köster, the companies specified and updated their application for funding to reflect the latest legal and organizational developments in the gas industry. Also, further research on technical and economic matters had been done, and the Finnish side had increased its organizational and financial strength, Köster’s statement read.
Elering and Baltic Connector OY would like the CEF to cover 75% of the project’s total cost, which is quoted to be €250m. So far, the European Commission has released funding in the amount of €5.4m for research related to the construction of the new pipeline.
If all goes according to plan, the pipeline should be finished in 2019.
Editor: Editor: Dario Cavegn