Estonian state-owned transmission system operator Elering AS and Finnish state-owned firm Baltic Connector OY signed an agreement on Monday on their cooperation concerning the undersea portion of the Balticconnector project for the interconnection of the natural gas transmission systems of Estonia and Finland.
The total cost of the project is 250 million euros, of which 187.5 million euros will be covered by the EU.
According to the agreement, ownership of the submarine pipeline section of the Balticconnector will be divided equally between the two parties, who will prepare a joint procurement strategy for the construction of the offshore section; on-shore sections of the pipeline will be developed separately by each party.
Elering and Baltic Connector will also establish a joint steering group, which will serve as the highest decision-making body on questions regarding common issues related to the project.
The two companies are scheduled to sign a grant agreement with the European Commission on EU co-financing for the gas interconnector project on Oct. 21.
The 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 below the Gulf of Finland. The planned interconnector is expected to increase the security of supply as well as energy security in the entire region and will open the Finnish gas market by connecting it to the European gas network.
Construction of the gas interconnector is slated to be completed by 2020.
Editor: Editor: Aili Vahtla